The common thought is that
getting a loan for your new car purchase is pretty easy and straightforward. However,
it is not so. There are a few ostensibly minor variations which can be actually
cost you a lot of money. Therefore, it is worthwhile checking various loan offers
that may distinguish the desirability of one loan over another.
Finding a car loan with the
right benefits and interest rate can be the difference between you buying the
car of your dreams or simply a car that you can afford. So, it is important
that you give yourself solid answers to these questions:
- What is your current financial situation?
- How you expect your finances to changeover in
the coming years?
- Which car you want?
- Do you think it is likely that you will want to refinance
at some time during the life of the car loan?
Before choosing a car loan,
there are several things that should be kept in mind:
- Credit
History ---- there are several
lenders that may lend you money even if you have bad credit, but they may
penalize you to pay high interest rates.
- Compare
Rates ---- rates vary and there
is no sense spending even a dollar more than you have to so get several
quotes before you buy your car.
- Transfer
Balances ---- be sure to look
for hidden fees and transfer balances that my not be apparent at first
glance.
- Required
Information ---- lenders will require
your financial information such as whether you own or rent a home, how
much your payment is how much money you own on credit cards, etc.
- Pre-Payment
Penalties ---- if such a
penalty is built into the loan contract, the lender will penalize you, by
charging a fee, if you pay the loan off early, whether through refinancing
or by any other means. So, if you think it is likely you will want to
refinance at some time during the life of the car loan, this is clearly an
important consideration.
- Simple
Interest Loan ---- never agree
to a car loan that is not a simple interest loan.
Also, don’t forget to ask
the following questions while looking for the right car loan:
- What interest rate can you offer?
- What is the allowed time of repayment?
- What down payment will you make?
Remember to go through the
car loan contract thoroughly and be sure you understand each and every word. If
you don't, take your time and ask any expert. But don't let anyone rush you
through the process. In this way, you could get the car loan that is right for
you now and in future too.
