Aside from a house, a car is often the most significant purchase a person will make. With down payments, financing, and loan payments, the purchase of a car can be financially daunting.
Preparing financially for a car purchase doesn’t have to be overwhelming, though. Keep these four tips in mind while you’re saving up enough money to drive off the dealership on your new wheels.
Set a Budget
The most simple of our four steps may also be the most important: set a budget and stick to it. Check to see how much cars similar to the one you want are selling for, then decide if you are willing to spend that much. If not, then find something else. It’s quite simple, but sticking to a budget will help you avoid spending money you may regret having parted with down the road.
Know Where Your Credit Stands
Many online services will provide you with your credit score for no charge. Being aware of the state of your credit will help you know what to expect when looking for financing. The better your credit score is, the more favorable your loan terms will be. Even if your credit is less than perfect, you may still qualify for financing – just with a higher interest rate.
Get Pre-Approval
Before going to the dealership, shop around with several lenders to be sure you get the best interest rate. Once you find the best deal, go ahead and apply for pre-approval. Bring your pre-approval documents with you to the dealership. They may be able to match your pre-approved offer or beat it. Either way, you’ll know you got the best deal you could find.
Decide What to Do With Your Old Car
Will you trade in your old ride, or sell it on your own? To help you decide, do research online to find out how much cars like yours are selling for. You can typically get more for your car by selling it yourself, but that does involve more time and effort. By knowing the market value of your vehicle, you’ll see if you’re getting a good deal if the dealer gives you a trade-in offer.
Before acquiring another stream of debt, it is essential that you handle any outstanding debt issues. The worst thing you could do is purchase a new vehicle requiring monthly payment and you are already behind on credit card payments. Attorney Heather Benveniste with Benveniste Law Offices can help mitigate your financial troubles and prepare you to purchase the car of your dreams. Contact us today at 1-800-497-5358 for a free case evaluation.