|
Before you head off to the auto dealership you need to know exactly how
much you can afford in monthly payments. Set it low and expect it to
go much higher, so know the absolute most you can afford to pay and
don't let the salesperson talk you into spending more.
The next of our auto financing tips stresses the importance of avoiding
the temptation of paying too little for a down payment. While it makes
it easier in the here and now, in a few years when you start thinking
about upgrading to another vehicle, you'll find that you still owe too
much.
Something that may come as a surprise when mentioning insurance in
connection with obtaining auto financing: It's not necessarily important to
the lender that you have auto insurance to obtain the loan. No, many
lenders will be interested in whether you have life and disability
insurance.
Number five in our auto financing tips is the importance of shopping
around for your auto loan. There are many loan sources other than the
dealership. Look into your local bank, the credit unions and online auto
loan companies.
Next, read the fine print. It would be too bad if you decide to pay
off your loan early, only to find that you have to pay an early pay off
penalty. That reminds me, I don't know whether I have an early pay off
penalty.
All in all, these auto financing tips point to the fact that a little
pre-shopping homework could save you not only time, but potentially a
lot of money. Don't just wake up one day and decide to go buy a new car.
Take your time. Educate yourself and shop around. Then when you're
ready.go for it!
|
