Let’s say that you finally decided to go about getting yourself a brand-new or used car but you are a little confused about how to go about getting yourself a good deal on a car loan. The first thing the you are going to have to do is decide if you’re going get yourself a brand-new car or a used car. Next you should decide which make and model of the car that you like to purchase would be.
After that, you need to figure out how much it’s going to cost, and finally you should then figure out what the exact loan amount is needed in order to be able to finance it. For example, if you are able to sell or trade in your old car, you’re not going to have to take out as much money on a loan.
In order to figure out the amount of the auto financing for bad credit car loan that you plan on taking out will be, you will first need to anticipate the amount of money you will be receiving for your old vehicle. At this point, you can begin to look around for the best possible car loan terms that are available. You should take the liberty of researching the different types of vendors out there such as online loan lenders, credit unions, and banks.
Auto Financing for Bad Credit:
There is some specific criteria that you should be taking a look at when you are comparing the different loan terms from various different car loan lenders. First, you take a look at the car loan company. Ask yourself if it is known for providing good services for their clients. You may want to actually take a look at the Better Business Bureau in order to ensure that no complaints have been listed with them in the past.
Another great way of finding yourself a quality company is by utilizing word-of-mouth. Do you have any friends or family that have had good experiences with a specific car loan company? It is always best to go with what is proven to work well for others in order to give yourself the best opportunity of gaining the best deal on a large financial purchase such as a car loan.
The next thing you are going to want to take a look at with the car loan comparison is to look at the annual percentage rate on the loan itself. This is going to tell you exactly how much interest that you are going to end up having to pay each and every year on your loan. This is likely the biggest factor to take into consideration when deciding on which auto financing for bad credit loan is right for you.
This interest rate dictates how much money will be spent over the course of the lifetime of the loan. Taking into consideration the interest rate will allow you to also figure out what the length of loan term will be for you so that you can figure out exactly how much each month you are capable of paying in order to be able to pay off the loan without having to spend too much on interest.
Something else that you should take into consideration is finding out if the car loan lender adds any additional fees onto the cost of the loan. All of this should be factored into your monthly payments so that you can decide whether or not it will fit into the confines of your budget.
Utilizing all of this information you should be able to intelligently compare and contrast the different offers that you receive from various lenders. Before you decide to go about signing anything you should also make sure that you thoroughly understand the terms and conditions that are presented to you so that there are no surprises in the future. Good luck on your search for the perfect car loan.
I agree with Max & Jamie ,buying a used cars is good deal in terms of deprecation & cost, but looking at the current scenario many car manufacturer like GM,Ford have brought great scheme where they pay your car loan dues upto 12 month if you become unemployed.This is eligible only for new cars. Also there are many cheap loan facility available with vendor on buying a new car.
So I think buying a new car is wise then a used one.
Jamie I agree with you and Max usually but with this economy I’ll pay a couple thousand dollars to get a brand new car verse used. We just purchase a 2010 Honda pilot for 1,000.00 more dollars than a used 2009 Honda Pilot.
KBB was 6k dollars less for the used 2009. So while the brand new 2010 may loose value as soon as you take it off the lot it’s still worth more money and it was only 1k more. There are awesome deals to be hand on new cars right now but generally speaking buying a used car gets you much more value for your money.
I fully agree with Max. Would never buy a brandnew car. Once you drive off from the car-dealer, your auto lost 30% value :-( no good deal, isn’t it?
Max you are correct for the most part but I disagree on a couple things. You do pay less for a used car but with the current economic situation you can get amazing deals on new vehicles. For example Chrysler this past month had 12k off MSRP for almost all their vehicles.
Financing is usually cheaper on new vehicles as well. Lenders see them as better investments ( for lack of better words ) since the car is not as old and has not depreciated as much.
There are also a ton of very low APR rates on new vehicles, I’ve seen 0% – 2.9% and that’s a really good deal.
Thanks for your comments,
Daniel
I will always buy a used car that’s only a few years old. They are generally in great shape, and you pay way less for a used car then a brand new car. The financing needed is also way less, so many pluses when buying a used car over a new car.