www.1choicecarloan.com

Easy Auto Loans

Shopping for a new or used car can be a daunting task… how old, what colour, which model, drink holders or DVD players, dual cabin or sedan? These are all important questions. In addition to these burning queries, it’s unlikely that you’ll be heading out to buy such a large purchase with a blank check or pocket full of cash. Instead, a car loan or other financial solution is sought. Pair the confusion of applying for finance with finding the ‘right’ car for you and the whole ordeal of buying an automobile can become pretty confusing for the average person! Avoid car loan associated stress by following these three easy steps.

Step 1: Plan Ahead

Most car loans are short term and are intended to be repaid within 2 – 6 years. Your automobile loan is probably only second to your mortgage in size, so it’s no small commitment. Make sure you shop around for a reputable lender – if the deal sounds too good to be true, study the fine print well! If you default on this loan it could affect your credit history and make future purchases difficult. On the other hand, if you select a trusted loan agent and make your repayments in a timely manner, an auto loan can be a valuable asset to your credit rating.

You’re better off doing your research and making decisions about what you can afford before you sign anything… If you walk into a car yard or showroom with no plan you are simply put ‘easy prey’; expect to pay a premium price, shoulder high car loans interest and wear the financial burden of your loan for an extended time.

Step 2: Decide Your Budget

New cars lose value the moment they are driven out of the showroom. Are you really willing to pay thousands of dollars just for that ‘new car smell’ or latest shade of ‘purple grape’? A 2 – 4 year old car may share many of the features and options, and make for a more sensible choice. A car of this age will retain its value for a relatively long time and attract lower repayments over time than an old car (say one that’s more than 5 years old). Remember that you will be paying back more than the car’s original value over time through interest. Make sure that the vintage Hot Pink Beetle you have fallen in love with is really worth all that to you before you commit.

Step 3: Choose Repayments

Will you be opting for weekly, fortnightly or monthly repayments? Whichever you decide on you should try to aim for this amount to be no more than about 20% of your expendable income. You do not want to miss payments and have to pay late fees on top of interest. The length of the loan term you choose will also determine how much you repay… A seven year loan may look good when shown as low weekly payments, but ask yourself how much you will be paying back after the full loan term. The easiest way of finding out how to get a car loan you can afford is to use a car loan calculator. These types of applications work out the repayments (e.g. weekly, fortnightly or monthly) that you will need to make, taking into account any deposit you may have contributed as well as the initial loan amount and car loans interest. If you don’t feel comfortable with the repayment amount try plugging different loan durations and payment frequencies into the car loan calculator. A longer loan may add to the car loans interest and eventual pay-back but could mean that you are more financially flexible for the duration of your commitment.

With so many different auto loan options available it’s important that you choose a product that suits your budget and gets you the car you want. Follow the above steps and be prepared for how to get a car loan without losing your sanity or the shirt off your back!