| It's time to trade in that time-honored old vehicle for | | | | afford in monthly payments. As a general rule, your |
| something newer. Perhaps you've outgrown the | | | | car payment should not be more than 20% of your |
| vehicle with new family additions, or perhaps you | | | | monthly income. However, the amount that you put |
| simply need something more reliable. Regardless of the | | | | down on the car, combined with the interest rate that |
| reason, you now find yourself in need of a new | | | | you receive, will dictate just how expensive those |
| vehicle. Before you even step foot on a dealership, | | | | monthly payments are. Use an online auto loan |
| you'll need to determine how you want to pay for the | | | | calculator to help you determine just how much you |
| new vehicle. Three options are available for you to | | | | can afford. |
| use; buy, lease or finance. | | | | Now that you know how much you can afford, you |
| Buying a car outright is the most affordable way to | | | | are ready to get that loan. You can do that before |
| get a new vehicle. However, most consumers simply | | | | heading to the dealership, as well. Some dealerships |
| don't have the cash up front to do this. Leasing is a | | | | inflate the interest rate on car loans, in order to gain |
| popular option, but it actually becomes more expensive | | | | more profit. However, you can get a loan from a |
| over time than most consumers would like. That | | | | different source and save money, in many cases. |
| leaves auto financing. This is the most common way | | | | Credit unions, your local bank and online lenders can all |
| to purchase a new car, today. | | | | offer you a viable alternative to dealership financing. |
| Auto financing offers you more than one option. The | | | | Take your time and sort through your options before |
| most common way to finance your new car is through | | | | making a choice. Choosing the first option that |
| the dealership. However, being well armed before | | | | presents itself may cost you more in the end. |
| heading to the dealership is important. The first thing | | | | If you do decide that you want to finance through the |
| that you should do is get copy of your credit report. | | | | dealership, you'll need to be on your toes. Remember, |
| You can do this free, once each year. Some states | | | | just because the salesperson says one thing on the lot, |
| will allow you to have an additional copy per year, as | | | | it doesn't mean that it will be that way in your contract. |
| well. Viewing your credit report beforehand will help | | | | Ensure that you read the contract thoroughly. In |
| you avoid expensive surprises when you get to the | | | | addition, knowing your auto financing information will |
| dealership. | | | | help you ensure that you get the right interest rate |
| Once you know how your credit stands, you'll need to | | | | from the dealer F&I officer. If you feel that you |
| define your budget. This includes how much you can | | | | are being "taken for a ride" do not hesitate to leave. |
| afford as a down payment, as well as what you can | | | | Your wallet will thank you in the end. |