What America drives, drives America. How true! Each one of us is extremely passionate about the four-wheeled invention. From the humble beginning in 1907, to the sleek cars today - cars have come a long way. Manufacturers keep launching new cars every year and we absolutely love to drive those beauties on street.
The New Car Prestige
Most of us search for a chance to replace their clunker with a brand new car. A new car means reduced maintenance cost, warranty coverage and more importantly, peace of mind. Moreover, there are higher chances of buying a junk and salvaged used car.
Buying a new automobile is fulfilling the ultimate American dream in true sense. A new car means you have established yourself and are now responsible of making a huge financial commitment.
Now’s The Time
New Year means several auto shows and new car launches. The Year has ushered in good news for the auto industry. The sales are anticipated to go higher than last year’s 12.8 million. Higher car sales mean many are replacing their aging automobiles. Be one of them and get ready to chuck your old car for a new-flawless beauty. If you are concerned about high cost of financing a new car, here’s a comprehensive guide to help you buy the car of your dreams.
Money-Wise For a Wise Decision
A mark, a yen, a buck, or a pound
is all that makes the world go around
One can understand the importance of money with this Liza Minnelli song. Yes, money is important when it comes to buying a car. Although car loans will do their magic, you should have some amount for making a decent down payment.
Ascertain your affordability. You must understand that when you set out to make a major financial decision, you must be ready with everything. Prepare your budget. Deduct all your expenses and current loan payments from your gross monthly income. You must consider all the major future expenses like college fees, marriage, holiday trips, etc. If you have a balance enough to make easy car loan payment, only then think of buying a car.
While deciding on monthly payments, you must not forget all the car-related expenses like fuel, maintenance and insurance.
Buying a new car is an important rite of passage for us. It is very crucial investment decision and you don’t want to lose your hard-earned money. So, even though it is rather tedious, it will definitely help you to narrow down your choices.
Once you know your affordability, start scouting for an auto loan. A new car is certainly more expensive than a used one and you must sort out the finance before going to the dealer’s lot.
You have many options for availing finance. Dealership financing, credit unions and banks are the traditional options. Most banks have stringent lending criteria and you need to be a member of the credit union to avail finance from them.
You can also go for an online auto loans. Most buyers opt for it because of the convenient lending process. You will have to fill a simple application form for a new car loan and that’s it. Your work gets over there. These companies will search for a lender in their network and help you get the best deal.
While going the online way, you must take care of your data’s safety and security. Check the company’s security certificate and ensure its reputation.
What Factors Will Determine Your Approval?
Your credit score is not the sole reason of your approval or rejection. Here’s a list of all the variables involved:
Your credit profile should be for longer term. Along with a stellar score, it is important that you have a credit history of at least two years.
As the cost of a new car is high, be ready to make slightly higher payments. Most lenders will want you to earn at least $1,000. Pay stubs or W-2 forms can help you to prove your income.
It is essential to have a stable income source. If you are constantly switching jobs, lenders won’t trust you. You must be working at your current employer for at least six months.
Time At Residence
Most lenders want to know if you have a constant place of residence. It allows them to know if you are regular in paying your utility bills. Lenders will ask for a copy of utility bills.
It is the initial upfront amount that you pay while buying a car. A larger down payment will reduce your loan amount.
Having a co-signer will make a huge difference to your approval chances. A co-signer will assume the responsibility in case of missed payments.
Once you get approved, the lenders will contact you. Most financing companies have a network of lenders as well as dealers. So, it may happen that a dealer will offer you financing options. You must take this as an opportunity to build your credit score.
You Deserve the Best
It’s your time to judge the best car loan quote. Look for APR (Annual Percentage Ratio). It will tell you the exact cost of loan including all the fees and charges. Also, consider the loan term. Longer the term, higher is the chance of ending up with an upside-down auto loan. Repayment terms, prepayment penalty, repossession terms, etc. should be considered in advance.
After your application is approved, choose your dream car. Select the one that really fulfills your needs and suits your style. Don’t forget to read reviews and also consider manufacturers’ incentives.
Here’s wishing that you get your perfect new car. Take a wise decision and enjoy your charming and elegant beauty on wheels.
For more information please visit: http://www.ezautofinance.net/