Driven Decisions – 6 Things to Consider When Applying for a Car Loan
I am sure you have applied for many things in your life. Applications for a job, to get into a prestigious college, or to get any type of a license are required. It is always a process and involves much paperwork. Applying for a car loan is no different. It can be frustrating, especially if you have never gone through the process or if you have a poor credit score.
This is why being prepared for a car loan application is essential.
You will want to make sure you have all your ducks in a row before going into the car dealership. Before you can apply for your dream car though, you have to consider all of the options to get the best value you can.
Keep reading for six of the best tips to consider when applying for a car loan.
Look into all Financing Options
One of the best decisions you can make when looking at purchasing a new or used vehicle is to investigate all your financing options. Make sure to ask your local bank regarding a car loan, as well as a car loan provider like Latitude Finance, as they specifically deal with car loans day in and day out and can get you the best fixed-rate secured loan out there!
Check Your Credit Score
Another important tip when looking at buying a new car is to check your credit score.
You want to check your credit occasionally anyway to make sure that there has not been any unwanted or unauthorized access to your credit. As you think about a new car, check your credit score online and see where you are sitting, so you know how much of an advantage you have when making the best deal for yourself.
Get a Fixed Rate Loan
When applying for a car loan, obtaining a fixed-rate loan is essential. Verify your loan will be a fixed-rate loan. This is important because if the loan you receive is a variable rate loan, the interest rate can change monthly and so will your payment. If you are on a budget, which most of us are, and you need to know the same predictable repayment amount monthly, then a fixed-rate loan is the best option for you.
Fees & Charges
Another excellent point to consider when applying for a car loan is to ask about added fees and charges. Some lenders will charge an application fee as well as a monthly service fee, and an establishment fee. Talk with your loan expert and ask questions about the additional costs when purchasing a car as they can add up quickly!
Don’t Fall for the Exclusive Deal
Car dealerships love to make special offers that are too good to pass up. Who wouldn’t want five years or 90,000km of free service on the new vehicle they just purchased? The problem with these special deals is that they leave no wiggle room to reduce the price of the car.
When there is no negotiation ability, you feel the stress of your decision bearing down on you. Think through the special offer. How many times will you have your new car serviced in five years? Are you really going to use the $5000 in savings? If not, then try to negotiate the price of the car down by $5000. You can then take your vehicle to a certified mechanic who will charge you a reasonable amount for service. By doing so, you are saving yourself thousands of dollars in interest in the end.
Don’t Make a Rash Decision
The last essential tip when applying for a car loan is to take your time. Do not make a hasty decision. You will have this vehicle for many years, and you will be paying on the loan for many years so make sure the car is exactly what you want before purchasing it. Do not fall for the “limited time only” spiels that car dealerships like to use. Buying a car is a huge decision; you do not need the added pressure of a time limit.
Why Being Prepared for a Car Loan Application is Crucial
You should never make a hasty choice in life because it can come back to haunt you, and purchasing a new or used car is no different. With a little preparation on your part, you can be confident to speak with a sales representative to get the best value for the price in regards to your dream car. Make sure you check your credit score and verify it is correct.
Be knowledgeable on fixed loan rates as well as the fees and charges that will be extended to you. If you are prepared it will show, and the application process, as well as the car purchase, will be a breeze!