Simple Steps to Get a Great Car Loan.
Getting a car loan can be a scary thing. Weather it is your first or tenth auto loan not a lot of people know a whole lot about them. Here at Michiana Auto Mall we have put together a few steps to take this process and make it easy and a great experience. This is not an all inclusive list. Every one has their own situations, but these steps are here as a guide for you to work with.
Step 1. Check Your Credit
Credit scores play a key role when it comes to the rate you pay on your loan. There are a few other thing that come into play, but for the most part it is based around your credit score. A good rule in this area is to check you score once a year. A high credit score gets you a low interest rate, ultimately saving you money.
Step 2. Work out your payment
This is the most important step in the process. In this step you need to sit down and work out what you can afford a month in payments and what you can have for a down payment. Once you have the this worked out you can plug it into our Payment / Purchasing Calculator
. This tool will give you a great idea about the price point you can go into your vehicle selection with.
Step 3. Get Pre-Approved
This is a great tool when going in to working a deal on the car you selected. With having your own financing you take that out of the negotiations leverage this gives the dealer. But on the same note a dealer can in most cases get you a lower rate or the same rate. The reason for this is that they have a working relationship with the banks, and lenders. Also they have more options on where you can get financing from. But it is also a good idea to know what you qualify for before hand. Make this apart of your research process.
Step 4. Choose Your Vehicle
This is the fun part of the process. Again this is a process. Check out Michiana Auto Mall's 10 Tips to Buying Your Next Car
for more information on this topic. But remember you need to know what you need out of your vehicle.
Step 5. Finishing the Paper Work
This is where all of your research comes into play. If you don't understand something ask and don't stop till you get your answer. Read everything and take your time. This is time consuming but it is worth it in the long run. Also the dealership will offer you add-ons. Hing like service plans, tire protection and paint protection. Look into this before sitting down with them. The add-ons are not for every one but there are some good ones out there, and should be considered.
Step 6. Make Your Payments
This is important. If you do not make your payments your car will be taken back and your credit score will drop extremely low. This is where planning comes into play. If you run into a problem, don't just push it aside. Call your loan provider and work something out with them. They want you to succeed with this loan and many more.
If this is your first auto loan you are on the right path. Use the step and take your time. There is not time limit on this. Everything is on your time table. If you dont like something you can always walk away and try again. Have fun and enjoy yourself. Buying a car is fun.