Skip to main content

Tips on shopping for a car loan.

Typically, you begin shopping for car loans once you know your credit score. Next, you can compare different loan offers, including the fine print. Make these four factors part of your information gathering before signing on the dotted line.

1. What is the Annual Percentage Rate?
The annual percentage rate, commonly referred to as the APR, is crucial while you look at different options for a loan. The APR represents how much you will pay in interest during the term of your loan. Separate from the amount of your new car, this percentage can equal several hundred or several thousands of dollars.
A relatively low APR can save you a lot of money and give you a lower monthly payment. On the other hand, a high APR equals more interest you will pay. Additionally, your monthly payment will most likely be high.

2. What is a Comfortable Loan Amount?
The total amount of money you can borrow for a new or used car purchase is the loan amount. Being comfortable with the cost of buying a new or used vehicle is essential to making a good financial decision.
This may also include taxes, fees and how much you still owe for a trade-in, if you have a vehicle to trade. Generally, you can expect a high monthly payment if you borrow a lot of money. One way to reduce the amount of your loan is to have a large down payment at the time of purchase.

3. How Long is the Loan Term?
On average, the loan term for a new car purchase is five years. The longer your loan term, the lower your monthly payments. However, this also means you will pay more interest over the life of the loan.
With a short-term of three years, for example, you can pay off the loan faster and save on interest payments. However, this also means you will have a higher monthly payment.

4. How Much Can You Afford to Pay Each Month?
Basing your decision on the monthly payment can help you decide the best APR and loan term. Most online resources have car loan calculators to help you understand how much you can afford.
Borrowing tens of thousands of dollars can feel unnerving for some people. The good thing is you do not have to make this type of financial commitment blindly. Arm yourself with facts and figures so you do not spend more than you plan or can afford.

Comments

Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good. Try some of these great recipes too!  Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar in the mixing bowl and let stand for 5 minutes. Add the flour and salt and mix until a ball of dough forms. Roll ball onto a floured counter top and knead for a couple minutes.  2. Put dough in an oiled bowl and let rise for 30 mins in a warm place with a clean cloth draped over top. While your doug

Affordable Ways To Make Your Home Look Luxurious

How do they do it? Professional designers seem to pull it off so effortlessly, but how will you make your home look more luxurious? You could just employ a professional or you can personally undertake the task of transforming your home into a place of luxury on a budget. In order to save money on your purchases, be creative and vigilant in your pursuit for the perfect style. Follow our budget-friendly ways for making your home a vision of luxury. Think it through, choose a style Luxury look isn’t enough to go on, so before you start shopping and wasting your money on furniture and decorations you might not even use in the end, first do some research. Go online and do some window shopping and find which style is more to your liking . An elegant Victorian style or something more modern and chic? Don’t get me wrong, you may want to mix and match, but before you commit by buying anything, consider what look you are going for. White is the color of elegance Choosing white as yo

DIY Table Revamp - Guest Post

Hi all! I'm Tiffany from This Motherhood is Brought to You by Xanax and I am so excited to be a part of the Guest Post Swap and to be Amanda's swap partner! I love love love her idea on how to make indoor snowballs with egg cartons. I am definitely going to have to try that with my kiddos since my smallest one has decided that it has to snow for Christmas. Poor baby doesn't know snow is hard to come by in Alabama :( For my guest post I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!