Buying
a car can take a toll you. The entire process of finding a lender for
your chosen car can drive you up the wall. But, here’s the fact: Auto
loans are a necessity. Cars have become very expensive and in order to
buy a car of your choice, you need to deal with the financing process.
Do not worry. With the right approach, finding an auto loan will be a
pleasurable experience for you.
What goes Wrong?
Car
buyers spend days in finding the car of their choice. After meticulous
research, endless discussions and several visits to the dealership, you
select the car of your dreams. Then, you begin the car financing process
and you select the very first deal offered to you. This is where you go
wrong.
Learn the Right Approach for Buying a Car!
Buying
a car is not like shooting in the dark. You need to have a well-thought
strategy to get the best auto loan. If you proceed without much
thought, you will not get the most beneficial deal.
Step 1: Review your Credit Application
Every
auto loan application includes your credit score, income, employment
details and other personal information. Before submitting your
application, step back. Check how well you fare on the lender’s
criteria. Do you have a good credit score? Have you been at the same job
for more than a year? Do you have minimum debt? If you are a less-risky
and stable borrower in the eyes of traditional lenders, you will have
no problem in getting an approval. If you have got bankruptcy or
repossession in the past, there are chances that you may have to opt for
dealership financing.
Step 2: What’s the Type of Car you want?
Don’t
decide on the exact car make and model. For example, if you really like
Toyota Corolla, don’t pin down the exact year of manufacture, color and
specifications. List down a couple of cars that fit your requirements.
Honda Civic, Chevrolet Bolt, Hyundai Elantra, Toyota Prius and many more
similar compact cars are available in the market. Select the type of
car that you want to buy and make a list of your preferred choices.
Step 3: Apply for an Auto Loan
Now, is the perfect time to apply for an auto loan.
Remember to apply with multiple lending sources to enjoy the best deal.
Do not worry about hard hits on your credit report. According to Fair
Isaac Corporation, if you obtain a loan within 30 days, multiple loan
inquiries in relation to the specific loan will be considered as just
one. It means no matter you apply with different lenders, dealers, or
banks, your credit ratings will not take a hit. The tenure of 30 days
can be reduced to 14 days if the lender uses the older formula. Also, it
can go up to 45 days if he uses the latest one.
It
means you just have close to a month to seal the deal. So, it makes
more sense to have a list of cars ready with you. Doesn’t it?
Step 4: Analyze the Contract; Select the Car
When
you apply with different lending sources, you will get the benefit of
choosing the most advantageous deal. Study the auto loan contracts in
detail. Check for auto loan terms and penalties. Do not say yes just
because you see low monthly payments. Do a thorough analysis.
Do not worry if a dealer is offering you an auto loan deal. Dealership financing
is fast becoming a reliable means for getting a car. Having a list of
cars at your beck and call will help if you are approved by a dealer. In
such a situation, if the dealer doesn’t have the best deal on Corolla,
you can move on the next choice and close the deal quickly.
Obtaining
an auto loan is easy when you have a plan to follow. Do not say yes to
the very first deal. Know your budget, understand your preferences and
then apply with lenders to get the best deal. Remember that you do not
need to spend a large amount of time on selecting a car, instead your
focus should be on getting a favorable auto loan deal.
Do
you want a subprime lender to approve you for a loan? Are you
interested in bad credit dealership financing? Find a reputed auto loan
expert to guide you through the process of auto financing. Trust us to
find you zero down auto loan approval in no time.
