Drive Away in a New Car This Season

Do you feel like you are spending more money repairing your car than what it is actually worth? Maybe you have a baby on the way this year and need to trade in your two-door car for a more family-friendly vehicle? No matter what your reason is, there are steps you can take to make sure you are ready for your new car loan.

Prepare for a New Set of Keys

When considering purchasing a new car, there are some things you want to make sure you have in order before heading out car shopping.

First, you want to make sure your credit score is in good standing. The better the credit score, the better the automobile loan rate. Credit scores that range from 800-850 signify that you are an exceptional borrower, while 740-799 makes lenders believe you are very dependable. If you are in the good range (670-739), that is okay, but try and see if you can take steps to boost your score to the very dependable and exceptional ranges. Either way, you definitely do not want to let your credit fall below a 670. Having a score that low will make it difficult when asking for a loan.

You also want to try and put at least 20 percent down on your new vehicle. This will help you to not owe more than your car is worth down the road. In addition, you want to keep the term of the loan as short as possible. While it may be tempting to go for a seven-year loan, in the long run, it is not worth it financially. Try to keep your loan around four years or less if at all possible.

Got extras? Bring cash! When shopping for your new car, you will also have registration fees, documentation fees, sales tax, etc. Plan to pay for these additions in cash, instead of putting it all with your loan, to help you borrow less money for a shorter period of time.

Are you ready for a new vehicle? Contact one of our knowledgeable and experienced associates today to learn more about our auto loan options!