The decision to purchase a new vehicle is exciting.\u00a0Whether it’s your first car purchase or not, the freedom of mobility and independence is invaluable.\u00a0You can go anywhere, whenever you like.<\/p>\n
But cars are expensive.\u00a0Buying a vehicle that suits your needs and your budget can be a challenge.\u00a0Often, the vehicle that you would like to drive may not be the one that you can afford.\u00a0Become an educated buyer<\/a>.<\/p>\n <\/p>\n You may want to attend a local auto show, purchase car magazines, speak to car owners, or\u00a0research online.\u00a0Once you’ve determined the type of vehicle you’d like to buy, visit dealership websites.\u00a0Find the year, make, model, and color you’d like.\u00a0Ask about the cost and availability.<\/p>\n Once you know the\u00a0cost of the vehicle, decide how you plan to pay for it.\u00a0 Figure out the best way for you to finance your vehicle<\/a>.\u00a0You may have saved some money, have a vehicle to trade, or see that a dealer is offering rebates.\u00a0Review your budget and determine the amount that you can afford on a new car.\u00a0 At last, check your credit reports for errors.\u00a0 If you need to dispute inaccurate listings on your report, do so in advance of applying for new credit.\u00a0 The errors\u00a0 could make the difference between you being approved or denied for the loan.<\/p>\n Many times the dealer will assist in securing financing for your auto loan.\u00a0However, you may be able to get better terms through another bank, credit union, or financial institution.\u00a0Different lenders offer different terms.\u00a0You may be able to secure a loan on your own with a lower interest rate, monthly payment amount, and shorter loan period.<\/p>\n Only enter into a loan that you can afford<\/a>. Do not sign a loan agreement until you’ve made sure the financing terms are right for you.<\/strong><\/p>\n Often when someone plans to purchase a new car money has been saved to make a down payment.\u00a0 Any funds paid towards the cost of the new car will lower the amount financed.<\/p>\n Also, new car buyers may have a car to trade. The dealer will evaluate the condition of the car and offer an amount that the buyer could apply towards the cost of the new car.<\/p>\n After deducting the down payment and\/or trade, the balance of the car cost is the amount that a buyer would finance.<\/p>\n Before going to a car dealership, contact your lender to find out the balance owed on your car loan.\u00a0\u00a0<\/strong>Request a payoff figure so that you know the total amount to satisfy the loan.<\/p>\n The dealer may offer to add any balance owed on your trade to the new car loan.\u00a0\u00a0Whether you apply money toward\u00a0the new purchase with a down payment, or have the value of your traded vehicle applied towards the purchase, the cost of the new car will be reduced\u00a0and this will decrease the amount you\u00a0need to finance.<\/p>\n A<\/a>uto loans<\/a>\u00a0may make the purchase of a vehicle more affordable, allowing\u00a0the borrower to make monthly payments over a specified period of time. The loan agreement,\u00a0or Retail Installment Sales Contract<\/a>, signed at the time of purchase\u00a0states the monthly payment amount and the date the payment is due.\u00a0Payments must be made in full and on time. If the buyer defaults on the terms of the auto loan, the lender has the right to repossess the vehicle<\/a>.<\/p>\n If you\u2019re in good financial standing and have a good credit score<\/a>, you should be approved for an auto loan.\u00a0Good credit shows financial responsibility and that you have a history of making payments on time. Check your credit report and score before you discuss options with a potential lender so you know where you stand. You can get a free copy of your credit report<\/a> every 12 months from each of the three credit reporting bureaus.<\/p>\n If you can\u2019t secure a loan on your own, consider asking a family member or friend with good credit to co-sign<\/a> for you. A co-signer guarantees that the loan will be paid if the primary borrower falls behind on payments or defaults. It is a significant financial responsibility, so make sure that the person you ask to co-sign is aware of the financial obligation.<\/p>\n If purchasing a new vehicle doesn’t fit your budget right now, consider waiting a bit longer.\u00a0It may be worth it in the long run. If you’re in a\u00a0stronger financial position, you may\u00a0be able to make a larger down payment,\u00a0get a loan with a lower interest rate and shorter payoff\u00a0period.<\/p>\n Flitter Milz is a consumer protection law firm that represents people that have had a vehicle repossessed – whether payments were missed or not<\/em>.\u00a0 Contact Us<\/a> to discuss issues related to your vehicle.<\/p>\n","protected":false},"excerpt":{"rendered":" The decision to purchase a new vehicle is exciting.\u00a0Whether it’s your first car purchase or not, the freedom of mobility and independence is invaluable.\u00a0You can go anywhere, whenever you like. But cars are expensive.\u00a0Buying a vehicle that suits your needs and your budget can be a challenge.\u00a0Often, the vehicle that you would like to drive … <\/p>\nBuying a car is a two step process<\/h2>\n
1) Shop around for your new car.<\/strong><\/h5>\n
2) Shop for your financing<\/strong>.<\/h5>\n
Research your Lending Options<\/h2>\n
Down payment, trade-in, or both?<\/strong><\/h2>\n
Is Money Still Owed on my Trade?<\/strong><\/h5>\n
Owning a car is a responsibility<\/strong><\/h2>\n
Check your credit report<\/strong><\/h2>\n
Consider a co-signer<\/h2>\n
Wait and save<\/h2>\n
Seek Legal Help<\/h2>\n