I can tell you that nothing beats the feeling of stepping into a new car and the smell that envelopes you make you giddy with pleasure. The only thing that will break the spell you are under is the thought of your car note. Like many of us there is a car note involved. Is your car loan putting you in the poor house?
This is the question many people are facing and for many the answer is yes. Do you own a car and your payments are bleeding you dry or you are about to purchase a car? Here are some advices that can save some money. Before you head into a dealership or confront a seller.
Know what you can afford
*Buying too much car- No more than 15% of your income should go to your car loan.
*The higher the value of the car, the higher the payments are.
*Higher insurance premium
*Higher repair cost when warranty expires
*Set up a monthly budget with all income and monthly expenses
Know the total cost of owning a vehicle, you may be surprised at the numbers. Only you can tell if this numbers are right for your budget. You want to know the interest rate that is being offered, then do a comparison with other lenders. Go for the lowest rate, that will mean lower monthly payments.
How it works
Example, if a person got a loan through the dealer it is going to cost him more than it would if he had gotten it from a traditional bank. The dealer must make his cut and the rate is going to be several percentage points higher.
Set you budget before venturing out and make the decision to stick to it.
*Check you credit score in order to know what interest rate you would be qualified for.
Not everyone can make a cash purchase of a new car and this is where financing comes to play.
*Before approaching a dealer have everything in place. This is going to save you a lot of headache and dollars.
*Have a down payment, 20% is preferred.
*Check your financial institution for preapprove loans.
*Nothing is carved in stone. If it doesn’t feel right, walk away.
It is advisable to pay cash, it is the smarter way to go. You will end up saving hundreds, maybe thousands on the final cast of the vehicle. No longer will the question be, Is your car loan putting you in the poor house? Remember Poorness no more is here to help you get away from being poor.