New Car Loans - How Much Can You Afford To Borrow?
Written by: Carrie Reeder
Before you start car shopping, first figure out what you can
afford for a car payment. Look at your budget, research auto
loans, and investigate lenders. Once armed with this
information, you can choose a car that you can both enjoy and
Expense Of A Car
According to the FCIC, a car payment should be less than 20% of
your after living expenses budget. While this is a good number
to start with, you will want to look at your own budget numbers.
Be sure to include other miscellaneous car costs, including
fuel, insurance, and licensing fees.
You will also want to plan on a down payment and enough cash for
the initial license, registration, and sales tax.
Terms Of Auto Loans
Auto loans vary with their terms rather than financing options.
With a down payment of at least 10%, you can expect to find
reasonable rates. While you can find auto loans with zero down,
rates will be much higher. In fact if you can put down more than
10%, you will save more money in interest charges than if you
get a lower rate.
Another way to pay less for your auto loan is to opt for a
shorter term. You can get a seven year loan, but you are adding
hundreds of dollars for those lower monthly payments. However,
base your decision on what you can afford with your budget.
Auto Loan Lenders
Auto loans aren't simply limited to your dealership or local
bank. You can find hundreds of online financing companies who
can offer you a great deal. Take a couple of hours to request
quotes. Compare the rates and terms to select the best deal.
Even if you have poor credit, still check with conventional
lenders. More and more are offering sub-prime lending. You may
be surprised at the low rates offered to those with damaged
You can also opt to be pre-approved, which will give additional
leverage when negotiating your car deal. The application process
is handled online, and you walk into the dealership with a blank
check. The loan is finished when you fill in the amount and sign
New Home Construction Loans 101
When you are ready to build your first home or that dream home
that you have been wanting for so long you will probably wind up
needing help with the financial part of the building process.
The funding for your new home is available through new...read more
Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to
replace an existing loan secured by the same assets.You must
speak with a finacial advisor before you decide to refinance.
Refinancing the loan you had taken at higher rates is a...read more
How to Qualify for a Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase
your first home? If so, you should read the following tips below
that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For