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

I Need 100 Dollars Now - Small loan with easy repayment option
Published by Jacob Madox on June 25th 2012 | Loans
If you are taking quick cash via “I Need 100 Dollars Now” loan, you can instantly meet cash cris...
 
Instant loan today - Get quick money within few hours
Published by Aldenn James on July 13th 2012 | Loans
By getting quick funds via instant loan today, you would be able to fight against unexpected fiscal ...
 
Secured loan offers low interest rates
Published by Helen Jones on December 1st 2011 | Loans
Choosing the right loan will change your life. We change lives... For the better. Cheapest and the m...
 
Avail best boat Insurance coverage with these tips
Published by David Hurley on January 14th 2012 | Loans
Getting your boat insured is a very important thing that is ignored by most of the boat owners. Ther...
 
Get up to $250000 in Fast business loan alternatives at MCC
Published by Merchant Cash on July 10th 2012 | Loans
When you are in the line of business, there is a need to have a constant flow of cash. This can be f...
 
500 fast cash - Small loan available for everyone
Published by Thomas Symends on June 19th 2012 | Loans
If you are availing 500 fast cash scheme, you will grab quick cash in order to meet cash worries. Th...
 
6 month loans online- No requirement of lengthy formality for taking loan
Published by Aldis Roy on June 25th 2012 | Loans
By acquiring quick cash via 6 month loans online, you can overcome fiscal worries without any delay....
 
Installment loans- Useful loan to meet unexpected fiscal needs
Published by Georgia Bart on July 4th 2012 | Loans
If you have taken installment loans, you can fulfill any unexpected financial needs with ease....
 
Loans in minutes- Get instant funds with these loan services
Published by Adam Felix on July 4th 2012 | Loans
If you are acquiring instant funds via loans in minutes, you can also easily overcome unexpected fis...
 
Getting a small business loan, quick and easy
Published by Mathias Scott on March 7th 2012 | Loans
There are times when every business owner finds themselves in a sudden bind when it comes to finance...
 
10 dollar payday loan- Fastest way to avail small cash
Published by Addison Maddy on June 16th 2012 | Loans
10 dollar payday loan is actually a small cash loan especially crafted for everyone who wants to bor...
 
Payday advance- Get instant approval of loan along with quick money
Published by Jelsan Smith on June 4th 2012 | Loans
If you have taken payday advance scheme, you have right option to fight against cash worries....
 
No direct deposit payday loan-Solve financial problems with ease
Published by Abell Bush on March 29th 2012 | Loans
With the assistance of no direct deposit payday loan, you can obtain funds up to $1500 to surmount f...
 
Axis bank home loan
Published by Moneylaxmi on December 16th 2011 | Loans
We Will Assist you To Complete your dream of own home by providing home loan from Axis, India’s le...
 
15 day payday loans- Perfect choice of short-term loan
Published by Norwick Kerry on December 19th 2011 | Loans
For those borrowers who want short-term loan, 15 day payday loans are the best option for them....
 
Signature loan- Feasible loan offer for everyone!
Published by John Simen on May 14th 2012 | Loans
With the aid of signature loan, you can overcome any financial crisis without any hassle....
 
Apply for payday loan- Convenient Payday Loans for Small Needs
Published by Jessn Donald on April 14th 2012 | Loans
Do not disturb your savings to pay off sudden expenses. Apply for payday loan and enjoy cash help an...
 
Small payday loan- Resolve any cash worries within few days
Published by Abell Bush on June 19th 2012 | Loans
If you have taken instant funds via small payday loan, it is quite easy for you to utilize the money...
 
Instant approval payday loans- Small cash loan with short duration of repayment
Published by Albert Bells on April 12th 2012 | Loans
If you got stumbled upon fiscal trouble then you need to get instant approval payday loans in order ...
 
Emergency payday loan- It works perfectly for needy
Published by Georgia Bart on March 15th 2012 | Loans
Take instant cash for up to $1500 with the aid of emergency payday loan in order to fight against an...