Buying a car is a fun and exciting experience. While it can be exhilarating to get behind the wheel of your favorite ride, most people don’t have the cash to simply write a check and walk out the door. Indeed, most will need to secure financing in order to complete the purchase.
There are many loan options out there and the following are some strategies we recommend to help our clients save more of their hard-earned money.
1. Keep the Term Short
Interest payments add up over time, and the shorter the duration of your loan, the less you will pay in interest. While you can finance a car for up to seven years, it is advisable to structure your loan so that it is no more than five.
2. Make a Good Down Payment
It’s a good idea to put 10% to 20% of the total purchase price down when you buy the car. This can help you secure more favorable interest rates from the lender. This is a little bit easier to do if you are trading a car in at the same time you’re buying your new one.
3. Boost Your Credit… or Get a Cosigner
Your credit score will be used to determine whether you qualify for a loan, and for what interest rate you can qualify. If your credit is less than stellar, take the time to improve it before you make a purchase. If you need the car now, then ask a family member with good credit to co-sign on the loan with you.
4. Pay Cash for Taxes, Fees, and any Extras
Pay these expenses in cash rather than financing them. The less you spend to finance these, the more money you will save. This includes any upgrades you would like to purchase, additional warranties, detailing, etc.
5. Get Ready… and Wait for a Good Deal
We also suggest that clients get a loan pre-approval prior to making a purchase. This will give you the flexibility to wait until the best car deal comes up. The advantage to getting ready to wait is that you can often get more for your finance dollar than you can if you rush out and make a purchase immediately. It also gives you an opportunity to conduct more research into the models you are considering so that you can find the best car to fit your needs.
The team at Simply Autos is proud to say that we have the best used cars in Las Vegas from which you can choose. We will be happy to answer your questions and help you find the best value for your driving needs. We invite you to visit our website to review the latest deals and offers we have available.