“A penny saved is a penny earned” - Benjamin Franklin
I know that we, Americans believe in living life to the fullest. We believe in enjoying the present. It is obvious because no one has witnessed the future. But, in these turbulent economic times, saving money is really important. A few dollars saved today will be of great help tomorrow.
A wise buying decision can save you several dollars. So, let’s understand ways to save your hard-earned money while availing auto loans.
The car industry and car buyers both are tech-savvy. Everything is online. Availing online car loans has become very convenient. You just have to fill a simple auto loan application form and let the online lending company do all the work for you. It will provide you with wide options of lenders who are willing to offer you car finance.
There are several online companies who are doing the work of finding a lender for you. This puts you in an advantageous situation. You can save money by going for the best deal. Avail quotes from several companies, compare rates and select the one that suits you.
These companies have different lending criteria. So, for some companies your loan application would be less risky and for others it would fall in the high risk zone. Let me give you an example. Suppose your credit score is 651. A lender may consider credit score above 650 as average credit and may approve. Another lender may believe that anything below 652 is a bad credit score. So, it is always advantageous to compare car loan quotes.
And, why do you shy away from comparison? To compare is like second nature to every human. As a child there was constant comparison with the siblings. In school, we compared our grades and clothes with our classmates. So, why change when you have to an avail auto loan? Does the joy of loan approval over shadow several other facts?
Don’t forget to compare car loan quotes. It will definitely help you in saving few bucks. Your focus shouldn’t be on the interest rate only. There is no point in a low interest car loan with a longer term. You must first calculate the total cost of the loan. You have to make room for several expenses like registration, insurance, taxes, fuel, etc. Compare two loan quotes by taking into consideration the total cost of the loan.
Also, pay attention to APR. The Annual Percentage Rate shows the actual annual cost of the loan. This will be useful to compare two different loan options with different terms.
If you are still confused, make use of online car loan calculator. Once you type in the interest rate, loan term, etc. you will be able to know the exact monthly payments. This means you can easily know whether you can afford the loan or not.
Also check the down payment amount. Generally, lenders offer lower interest rates only when you pay a huge down payment.
You must know that a longer loan term is not always better. If you decide on a longer term, your loan will be spread over more number of months. This will increase the risk of an up-side down loan.
Some companies also charge loan processing fees. So, you must study the terms and conditions before signing the loan agreement. Also check for payment liberty. It is always better to work with a company that doesn’t charge any pre-payment penalty.
Obtaining car loan is easy when you are on your guard. Compare the rates and scrutinize every detail.
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Hope you find that perfect car loan soon!