Car loans aren’t the most pleasant thing to go through; they are usually pushed onto inexperienced shoppers by shady dealers who are out to make a quick buck and simply put are almost impossible to avoid. Therefore, even though there’s almost no way around it, you can make the best out of a stressful situation. The following are our four best options when looking to finance your next car.
Option # 4: Choose a Short Loan with a Cheaper Car
One of the most common tricks that dealers try to play on a customer is attempting to convince them to think that purchasing a more expensive car is the same as purchasing a cheaper car because the monthly payments are the same. The reality is that although your monthly payments will, in fact, be the same, because the more expensive car has a longer loan, you will no doubt pay more in interest over time. Therefore, in order to pay less, opt-in for a cheaper vehicle that has a shorter loan timeline.
Option #3: Bad Credit? Shop For Your Own Car Loan
We get it, life sometimes gets in the way, and we might forget to make a payment or two on our credit cards. Nevertheless, your credit score will suffer at a time when you need it as high as possible. So, do you opt-in to obtaining a loan from your dealer? The answer is you may know is no! Dealers often want you to receive a bad credit loan from them because they can now justify charging you more. Your best bet is to shop around for bad credit loans from an independent source before going car shopping.
Option #2: Opt-in for Credit Union Financing rather than the Traditional Bank
When we think of loans, we often think of putting on our best suits or dresses on and heading to our local bank. However, dealing with a chain bank is usually a bad idea when it comes to receiving a good loan. Banks are built around investors and the ability to turn a profit for those investors as to where individual members own a credit union. The only catch is that you must become a member with a said credit union, an often easy process if you reside within that bank’s city.
Option #1: Buying A Vehicle With A Credit Card
This may be a little obscure due to the unbelievable interest rates on most credit cards. However, if none of your loan options meet your monthly budget, a credit card can come in handy. First, make sure that the credit card being used is a platinum card with a very high credit line and low-interest rate. After purchasing your vehicle, simply make payments equal or greater to that of your car payment.
Financing your next car can be a daunting experience, and it’s easy to fall into the typical dealer traps. However, keeping a level head and weighing the pros and cons of your loans can save you money and time in the long run. Look over these options, consult with your bank and dealer in order to make the most informed decision.