The second largest investment you will have in a lifetime perhaps is getting your own car. After you have scrutinized every model and zeroed in on the best car to purchase, the next process is to determine how you are going to pay it.
The road to car ownership is paved with car finance options. The package you choose will make the difference between monthly struggles and easy payments. Will you get to keep driving your car or have to default on the loan over a certain period?
When looking at your financing options, here are valuable tips to consider:
Think about interest rates. Your interest rate will depend on a number of factors such as the type of the car, the length of the loan term, your credit rating and the lender. Generally new cars have much lower interest rates. Higher interest rate is required for longer car loans. You will get lower interest rates if you have been pretty good at keeping a good credit rating score. Focus on the interest rates as different companies provide varying options.
Choose from as many lenders as possible. Your options for car financing could be banking institutions, the automaker, credit unions, and other lending sources. Weigh the pros and cons of the different types of lenders. Going through all the interest rates and loan-terms of the different lenders will be overwhelming task. Experts not only help you make the right choice, but also offer you a number of good options. Consumers today get the right financing for their vehicles with finance consultants working exclusively on helping consumers.
Seek expert guidance. A financial consultant would point out key features you may want for your loan, allowing you to get a tailored approach, and therefore an ideal solution, to your financing. Such expert help would also come in handy for businesses looking to invest in company cars and employers who may want to offer a lease (also known as salary packaging) to high performing employees.
Ask for special deals. Special deals on certain loans are offered by some lenders in order to get fairly competitive in the market. Depending on the automaker you have chosen, you could be given zero-percent financing or offered lower rates for short-term lengths.
Companies are able to help employees on their car financing needs through a special form of lease. The lease is a three-way agreement between the employer, the employee and the finance company. As the employer though, be aware that while you should be able to finance a car after a bankruptcy, you may not be able to get the best car finance rates.