Don’t Break the Bank!
If it is time to get a used car, then you need to look at your finances before you go to a car dealership. There are many different ways that you can finance a used car purchase without breaking the bank. Here are some things you will want to consider.
Know Your Credit Score
The higher your credit score, the lower your car payments will be in most cases. If you have a few small bills that you have forgotten to pay, then take care of them before shopping for a used car. Try to get your total debt to under 30 percent of your available credit. Make sure that you are paying your current bills on time. Make all inquiries about car financing within 90 days in order to avoid hurting your credit.
Consider Your Down Payment
Usually, if you can afford to put 20 percent down on the car’s purchase, then you can lower your interest rate considerably. You may want to take on an extra part-time job before making a purchase. Save that money and you will have a sizable down payment quickly. Think about other sources where you may be able to get extra cash such as selling things you no longer use. In order to know how much you need, do your research. If you really like the Ford brand, for example, then look into pre-owned Fords for sale. You’ll then be able to get an idea of how much the type of vehicle you’re wanting will cost and how much of a down payment to expect.
Shop Around
There are many different places that you can get a car loan, so be sure to shop around. When comparing loans, understand that each loan has three different components. The loan amount is the total cash that the institution will give you. Your interest rate is the amount that borrowing the money will cost you. Borrowing money over a longer term usually costs you more money over the course of the loan.
Sell Your Current Car
Most individuals can get more money for their current vehicle when they sell it to a private individual than when they trade it at the car lot. There are many different ways that you can let people know that you have a car for sale. You can talk about it on social media. You can put a sign in the car’s window. Consider parking the vehicle where lots of people will see it each day.
Use these ideas to start the process of getting the car that is right for your family. Then, expand on them to create a plan that is right for you.