Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Auto Loan Tips to Avoid an Impulsive Car Purchase

By Alan Hendricks Subscribe to RSS | January 24th 2012 | Views:
loading
 
  



Cars have changed our lives ever since the first car was launched. The entire America is head over heels for automobiles. But, cars are so expensive that you need a reasonable auto loan to buy it.

Buying a car is easy; getting the best loan rates is very difficult. The most awful scams occur when car buyers don’t take an informed decision. So, it is essential that you understand all about car loans.

For getting a car loan, there are several options with you. You can consider traditional options like banks and financial institutions. If you want to get loans without leaving the comfort of your home, online lending companies is your best choice. All you have to do is fill a simple application form. The company will do the work of searching the most qualified lender for you.

Whatever lending option you choose, it is essential that you take a well-informed and well-thought decision. There is nothing worse than an impulsive purchase. Here are some car loan – do’s and don’ts to help you get the best auto financing deal.

THE DON’TS

Don’t Leave Your Home Unprepared

Not everyone will con you. But, why take the chance?

Never, I mean never go to a lender/dealer unprepared for getting finance. It is smart to have some basic information before leaving your home. You must have a basic idea of what kind of auto loan you want. You must have answer to questions like, is there any major expense coming in the next few months? Can you really afford a car loan? Do you need a three year or a five year term? How much monthly payment can you afford?

When you have clear answers to such questions, you will be able to negotiate with the lender in a better way.

Most people get so excited for buying their dream car that they consider finance unimportant. But, you shouldn’t make the same mistake. First of all, prepare a budget. It will help you practically narrow down your search. Do remember to factor in registration and title fees, insurance costs, fuel and maintenance expenses, etc.

Also, know your accurate and current credit score. Lenders and dealers can fraud you by telling that you have a very bad credit score. There are several websites that just charge a nominal fee for your credit score. If you want to check your credit report, then freecreditreport.com is your answer. It will give your report for free, but not your score.

Don't Settle Without Shopping Around

Convenience is the buzz word today. We are ready to spend more if we are offered convenience and comfort. But, it is doesn’t mean lenders can rip us off in the name of ease. It seems very comfortable to get car and finance from one place. All work can be done in a single day itself. But, you must know that dealers often sell your credit application to other lenders and charge commission for it. This commission is added to your interest rate. So, it is essential that you shop around and get loan quotes from several companies.

If you won’t shop, how will you know about the best deal? Buying a car is not like buying your Chinese take-out. It is much more important expense than that.

Make the most of your computer and apply on several online websites. You will be able to generate free quotes. These companies have online loan calculators which mean you will be able to compare the loan rates also.

Don’t Sign Anything Unless You Are Sure

Your car will stay with you for next 3-5 years. You will be paying off your car loan for almost the same amount. So, you just cannot sign the contract without reading it thoroughly. Every word, every clause in the agreement should be very clear to you. If you don’t understand something, ask your lender. Don’t just sign the document because your lender said he is giving you the best deal. Read and make sure he is offering you the best.

DO’S

Lower Your Loan Amount

A car is an expensive purchase. When your LTV is hundred percent or may be more than that, you are risking your investment. How? It is so because the chances of an up-side down increase to a greater extent. A car depreciates quickly and there is a possibility that over the span of time your car’s value will be lesser than your loan amount.

You can decrease your loan amount by increasing the down payment amount. Also, a trade-in will help you. A lower amount will also give you the chance of getting a better interest rate.

Do the Calculations

You cannot believe everything the lender tells you. So, you must calculate monthly payments on your own. It is easy because online calculators are always there to help you.

Also, calculate the APR. The Annual Percentage Ratio gives you interest rate for a whole year, than just the monthly fee/rate. It will help you calculate loans with different terms on the same parameter.

Big Picture

Is a penny now better than a hundred tomorrow?

Many people consider present minuscule savings more important than a future treasure. They opt for a low down payment because it is easy very easy to manage. But, they don’t consider that a huge down payment can help them save on interest rates.

Don’t think low payments mean great loan rates. The lender may lower your monthly payments but extend your loan term. This won’t do any good for you. There are several options with you. You can go for high payments, pay-off your loan early and lower the risk of up-side. If you are predicting a huge income source in future, you can go for balloon payments also.

Do Negotiate

It is a general misconception that loan rates are non-negotiable. People think lenders are doing favor by offering them loan. But, it is not so. You have the right to get the best possible deal. So, don’t settle for what the lender offers you.

Don’t only discuss the interest rates. But, let the lender know that you won’t pay any pre-payment penalty. This will help you to refinance your loan, if you need to.

All these tips will make you better buyer. So, go ahead with this handy car loan guide get the best auto loan deal.

Say good-bye to impulsive buying. Welcome, conscious car buying!!!

All the best!

Alan Hendricks - About Author:
Ezautofinance.net not only offers the best auto loans, but also ensures that its customers take a perfect decision. Our wide network of lenders allows us to get you the most competitive rates. Apply now for instant auto loans on our website and enter the world of affordable lending options.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/loans-articles/auto-loan-tips-to-avoid-an-impulsive-car-purchase.htm

Related Loans Articles Subscribe to RSS

Personal Loan Company: Accomplish their personal requirement on rate interest loan
Published by Steve Matthew on February 3rd 2012 | Loans
Personal loans company are the most excellent resources of fulfilling the individual wants and one c...
 
Borrow 200 dollars- Typical loan available with small funds
Published by Micles Jonson on July 20th 2012 | Loans
By borrowing quick sum of around 200 dollars, you can fulfill small fiscal worries with
ease....
 
Bad credit secured loan :Acquire Finances to Rebuild Your Bad History
Published by Alan Poly on May 22nd 2012 | Loans
Bad credit secured Loan are relay very advantageous for every bad credit lender,as these loan do not...
 
Loans with no fees- Valuable gift for loan-seekers!
Published by Kert Kills on June 23rd 2012 | Loans
If you are availing Loans with no fees, it is sure that you will get quick funds. This loan will ser...
 
Small payday loan- Impeccable fiscal solution for salaried people
Published by Abell Bush on April 13th 2012 | Loans
By acquiring quick cash through small payday loan, you can combat unforeseen financial trauma with e...
 
Reliable tips for traders to make riches in the stock market
Published by Cody on June 7th 2012 | Finance
This is one of the most important things that you need to keep in mind before you start trading on s...
 
Personal Loan Tenants:Accepted by loan with quick selection right away
Published by Ian Foster on May 3rd 2012 | Loans
Personal loan tenants are frequently acquirable on somewhat small become awake of, which makes them ...
 
Emergency cash loan bad credit- Resolve financial emergencies now!
Published by Thomas Symends on May 26th 2012 | Loans
By acquiring instant funds via emergency cash loan bad credit, you can immediately fight unpredicted...
 
Fast payout loans-Quick loan service for your needs
Published by Onner Smith on December 6th 2011 | Loans
If you just want to eradicate urgency then it is better for you to avail fast payout loans. This loa...
 
US payday loan services- Fast service to offer quick cash
Published by Adam Felix on May 21st 2012 | Loans
With the aid of US payday loan services, everyone is capable to avail quick cash without any hassle....
 
Payday installment loan- Borrow quick money and overcome fiscal stress now!
Published by Alesia Ace on July 11th 2012 | Loans
Payday installment loan is considered to be good and ultimate fiscal solution for salaried persons w...
 
Payday loans with debit card- Startling loan facility for you
Published by Nain Seek on January 7th 2012 | Loans
If you have debit card in your name, you can easily obtain small amount of money with the assistance...
 
Loan for People with Bad Credit:An Exclusive loan for Bad Creditors
Published by Alan Poly on April 4th 2012 | Loans
Loan for People with Bad credit obtain loan due to bad credit appraisal but if you are still looking...
 
Ez cash loan- Challenge any fiscal worries today!
Published by Ricky Loyel on June 25th 2012 | Loans
Once you have derived cash from ez cash loan, you can overcome cash crisis without any hassle....
 
Payday advance- Short term loan for managing any emergency bill
Published by Roy Baker on March 27th 2012 | Loans
Short term loans like payday advance is suitable for removing the financial crisis until the month...
 
With online research you can loan about car loan with bad credit
Published by Pamela Andersen on May 16th 2012 | Finance
The online auto financing is easy way of saving time and money as well as not compromising on the ra...
 
Check into cash payday loans- the best loan deal for tough times
Published by Riyt Leson on July 24th 2012 | Loans
By taking quick funds via check into cash payday loans, you can easily get rid of any kind of financ...
 
Same day cash loans-Quick loan to assist your financial needs!
Published by Beidhi Ceeper on May 23rd 2012 | Loans
By taking private school loan for bad credit, you can easily manage expenses that require with your ...
 
I need a payday loan- How should I tackle the situation?
Published by Ponting Sarad on November 29th 2011 | Loans
By getting payday loan, you have right option to fulfill financial crisis without any hassle....
 
The interest rate for a car loan can differ
Published by Amber Dorsch on January 24th 2012 | Loans
It is always better to look around before getting a car loan as sometime your neighboring locations ...