Connect with us

Markets & Finance

Car Financing Tips In An Up Market

The great economic downturn that began in 2008 devastated a number of financial sectors, most notably the housing market. And for a long time, it seemed that this global recession might actually turn into a depression. But while things do remain difficult in certain corners, all signs point to a greatly improved economy. In fact, according to a spokesperson at GMAC, the economy is the best it has been since the recession started, and this translates into an attractive market for car buyers.

Car Financing Tips In An Up Market

These days, auto interest rates have eased and are at record lows, and those with less than perfect credit are finding that they can receive financing. This is because there is increased competition among lenders, which makes this time period a “buyer’s market” in the auto sector. But there are things these buyers can do to ensure they secure the most attractive financing possible in order to drive off with that perfect new or used car. Here are just a few of these quick tips.

Do a once-a-year Credit Check

Before a person commits to buying a car, he or she should know where their credit stands. There are a number of online resources that offer credit checks – some for free, some for a price – but what’s most important is that the potential buyer knows his or her credit tier. Doing so can help them calculate with remarkable accuracy how much they are likely to pay in interest.

Those with credit scores of 680 and above can expect good deals. In fact, prime borrowers can expect to pay an average of $60 per month for a five-year loan on a new car and $348 for a four-year contract for a used vehicle. Conversely, subprime borrowers (those with a 619 credit rating and below) are going to want to come up with at least a 20% down payment in order to assure reasonable rates.

Set a Firm Budget

It’s important for the buyer to take stock of his or her finances as well as their credit, and then set their budget accordingly. A good rule of thumb is that car payments should never exceed 18% of a person’s take-home pay.

Get Loan Preapproval

Those who can get preapproved for a loan should do so. This is because it eliminates loan negotiations during the buying process. Those who are preapproved from a private lender also will have a better idea of how much they need to finance as well as the interest rate they should receive.

Make a considerable Down Payment

It was mentioned above that sub prime borrowers should make a minimum down payment of 20%. However, super prime borrowers would do well to follow this model also. The reason being that those with good credit can offset first-year depreciation costs this way.

Being that it’s still possible for interest rates to hike up, consumers in the market for a new vehicle should strike now, while the market is on their side. And the above tips should help allow them to save as much money as possible.

Joseph Francis is a professional blogger that provides information and advice on car title loans and title pawns. He writes for TitleMax, an auto title loan company with locations nationwide.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Home Improvement2 days ago

4 Most Efficient Drainage Systems for Flat Roofs

The matter of drainage is the essential function of your roof. In fact, the very shape of a roof (a...

Google Algorithm Updates to Expect by The End Of 2021 Google Algorithm Updates to Expect by The End Of 2021
Business6 days ago

Google Algorithm Updates to Expect by The End Of 2021

Google’s algorithm updates tend to come with a lot of uncertainty and questions, and getting ahead of them is the...

Cozy Home Office Setup Tips For 2021 Cozy Home Office Setup Tips For 2021
Home Improvement4 weeks ago

Cozy Home Office Setup Tips For 2021

Whether you work from home or have set out a place for something you like such as crafting, studying, or...

Garden Party Ideas for Everyone Garden Party Ideas for Everyone
Entertainment4 weeks ago

Garden Party Ideas For Everyone

No one can make “a perfect’’ garden party, but we are all able to throw an amazing one. Of course,...

Find Low Competition Long Tail Keywords Find Low Competition Long Tail Keywords
Business1 month ago

How To Find Low Competition Long Tail Keywords Using Free Tools

Keywords are the most fundamental and highest ROI activity when it comes to SEM and SEO.  Having the right keywords,...

Top Tips For Healthy Family Meals On A Budget Top Tips For Healthy Family Meals On A Budget
General2 months ago

Top Tips For Healthy Family Meals On A Budget

A healthy diet is not very difficult to follow since there is a lot of information available on the Internet...

Tips For Your Morning Skincare Routine Tips For Your Morning Skincare Routine
Lifestyle2 months ago

Tips For Your Morning Skincare Routine

Keeping your skin healthy can come down to numerous things. A healthy diet will be a good start in keeping...

How to Make SEO Work For You and Your Business How to Make SEO Work For You and Your Business
Business2 months ago

How to Make SEO Work For You and Your Business

The world of search engine optimization has changed a lot, but certain fundamental principles like focusing on target keywords to...

How to Increase Your Vegetable Garden Yield This Year How to Increase Your Vegetable Garden Yield This Year
Home Improvement2 months ago

How to Increase Your Vegetable Garden Yield This Year

If you are going thru the effort of planning, planting, caring, and growing your plants, you naturally want to get...

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues
General2 months ago

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues

Oral Health issues can be a source of conflict and stress in families, especially in families with young children. Not...

What Type Of SEO Is Effective? What Type Of SEO Is Effective?
Tech2 months ago

What Type Of SEO Is Effective?

Every business knows that it takes a huge amount of time and money to maintain a website. However, no one...

4 Reasons to Replace Your Car's Engine With Performance Parts 4 Reasons to Replace Your Car's Engine With Performance Parts
Autos3 months ago

4 Reasons to Replace Your Car’s Engine With Performance Parts

Performance parts are the best kind of upgrades you can make to a car. Performance cars have a higher price...

Maximum Power: Update Your Old House For Modern Electrical Needs Maximum Power: Update Your Old House For Modern Electrical Needs
Home Improvement3 months ago

Maximum Power: Update Your Old House For Modern Electrical Needs

An outdated electrical system can wreak havoc on your energy bills and greatly increase your risk of structural damage. If...

Key Techniques To Learn On A First Aid Course Key Techniques To Learn On A First Aid Course
Health3 months ago

Key Techniques To Learn On A First Aid Course

Introduction First aid training is an incredible qualification that can enable one to offer life saving assistance in an emergency....

Best Tips For Managing Your Building and Construction Projects Best Tips For Managing Your Building and Construction Projects
General3 months ago

Best Tips For Managing Your Building and Construction Projects

Building and construction projects consist of many tasks, from job-site duties to office paperwork. Juggling it all can oftentimes be...

Categories

Archives

Trending