Buying a Car
You're looking at getting a new car but you don't have the money so you want to obtain a loan. Thing is, it's easier said then done. To obtain a car loan, you need to first shop around and do your research. Crunch the numbers and find out who has the best overall loan available. You need to also make sure you have a good credit score. The higher your credit score, the higher chance you have of getting that loan. Once you've done all this, you can go apply for the loan and hopefully get approved! However, you want to make a large down payment and for good reason. The larger down payment you put down, the better the loan terms are going to be. It's that simple. So if that means pooling all possible income resources together to making a large down payment, then so be it. Also, if you take out a loan that takes years and years to pay off, it may be a pain but if you make your payments on time, it's a great way to boost your credit score. But people need to realize that once you buy that car and drive it off the lot, it loses a significant amount of value. In fact, the moment you drive it off the lot, your car loses 11% of its value. After five years the car is worth 37% of what you paid for it at the dealership. Three tips we would strongly recommend when buying a new a car would be:
- Make a sizable down payment
- Setup your loan in advance
- Look at the total cost of owning a new car
Resources: http://banking.about.com/od/loans/a/How-To-Get-A-Loan.htm
http://www.chattelmortgage.net/Mortgage_Terms.html
http://outofyourrut.com/have-your-down-payment-ready-before-you-buy-a-new-car/
http://www.edmunds.com/car-buying/how-fast-does-my-new-car-lose-value-infographic.html
http://www.consumerreports.org/cro/cars/buying-advice/index.htm
News Story: http://www.chicagotribune.com/classified/automotive/used/chi-getting-a-car-loan-20121211,0,4878368.story
Video: http://www.youtube.com/watch?v=z39XhGpdvsk
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