Auto Finance

March 13, 2009 by  
Filed under Auto Finance

If you’ve decided it’s time to buy a new vehicle, there are some things you’ll need to prepare for and research prior to visiting the car lot. If you already own a vehicle, it may be time to refinance for a lower rate if you’ve had considerable improvement in your credit score, rates are lower and you need some extra cash.

Keeping track of your credit score with all three reporting agencies gives you a good idea of any inaccurate information contained in them and where you stand at all times. Debt management and wealth management both require this important habit.

TransUnion, Experian and Equifax are the three agencies you need to request a report from. Recent legislation allows for you to receive one free report from each every year, and this is a great way to examine them and ensure the information contained within is correct.

If there are any outstanding loans, collection accounts or invalid accounts on your reports, you’ll need to dispute them with the corresponding agency. Next, develop a debt management plan to pay down any existing loans as quickly as possible.

These actions will greatly increase your credit score, which is what will determine whether you are granted an auto loan and at what rate. Lower interest rates mean that you will be able to pay your car loan off sooner, and monthly payments will be much lower.

Next, determine how much you can invest as a down payment. Ten to twenty percent of the sale price is best, and will also help to qualify you for a lower interest rate. This will help you determine your budget, which you must stay within when it’s time to start shopping.

Some dealers and specials will also offer 0% interest for a specified period of time to qualified buyers; the secret is to pay the loan off before this period ends. If you don’t, interest will be due from the day you received the loan; this isn’t very beneficial to your long-term credit or debt management program.

You’ll also need to consider the sales tax, licensing fees, and insurance premiums. Most dealers will offer special financing deals on new cars, but the extra fees associated with them are much higher than a vehicle that is only one or two years old.

When you start test driving cars and think you have the field narrowed down to a few choices, call your insurance agent for quotes. You may find that there are drastic differences between the models, and will help you to make your decision.

As part of your personal debt management program, it’s important to ensure you are living well below your means. In addition, you should never pay more than is absolutely necessary for your new form of transportation.

Remember that car dealers make commissions, and sticker prices are never non-negotiable. Most dealers would rather make a deal at your price than lose a sale completely, so don’t be afraid to haggle or make an offer on the vehicle of your choice.

Whether you are looking for auto refinance loans, bad credit car financing or bankruptcy auto loans, there are companies that can help you. Even if you have a poor credit score, you can still get a car loan to buy a car that you want.

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