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.
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.
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
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
Building and construction projects consist of many tasks, from job-site duties to office paperwork. Juggling it all can oftentimes be...
How To Choose The Best Locksmith For The Job
The existence of a locksmith is very crucial for society because they help out countless people on a daily basis....
5 Modern Conservatory Ideas To Create A Serene Escape
Having a serene and relaxing conservatory is the dream, especially in the summer months. Creating an extension of your home...
4 Different Types Of Lifting Equipment For A Construction Site
One of the biggest challenges on a construction site is the problem of lifting heavy materials and tools to a...
5 Tips That Can Help Your Business Flourish
Many, both small and big, businesses were affected by the outbreak of the novel coronavirus, no one was spared. Overnight,...
Why First Aid Training Is Essential For Your Business
Introduction All employers, depending on the establishment, should organize and provide basic appropriate conditions for lunch breaks as well as...
Are You Covered? Tips For Finding Affordable Health Insurance For Your Whole Family
If you are in the market for health insurance, you may be overwhelmed by the many different features and the...
How to Prevent Potential Hazards In A Lab
Unfortunately, lab accidents can happen. When they do, the consequences can be very serious. Some of the most common lab...
How to Extend Your UK Spouse Visa
The UK spouse visa is also known as a UK marriage visa. The UK spouse visa allows married partners of...
How Best Is Automation Helping The Retail Industry to Survive?
“In the post Covid-19 world, the only place cos are willing to invest is in automation. The return on investment...
Best Artificial Intelligence Trends to Watch Out In 2021
Technologies are getting advanced day by day, and according to that, the developers and the mobile app development companies should...
Keeping Your Assets Safe — Crypto Insurance May Soon Become The Norm
Many people all over the world have compared the cryptocurrency market to the wild West, largely because of the fact...
Which VPN Is Best For The Windows 10?
VPN is necessary whether you are doing personal or professional activities. Fully secure VPN for the Windows 10 are hard...
Tech6 years ago
Creating An e-Commerce Website
Tech6 years ago
Design Template Guidelines For Mobile Apps
Business5 years ago
The Key Types Of Brochure Printing Services
Travel9 years ago
Who Else Wants Also Nfl Hat
General6 years ago
Kobe Bryant With His Unique Nba Jerseys
Tech7 years ago
Why Small Businesses Can't Ignore Mobile Technology
Tech6 years ago
Climb Google Using These Checklists
Health7 years ago
Health Supplements For Sports Activities Nutrition