Owning a car is a costly business. Apart from forking out for the initial motor, you also have to pay for tax and insurance. And, the insurance alone can cost more than the vehicle! It’s ridiculous, but it’s the way the industry works these days, and that is why lots of people struggle. But, does this mean that owning a car is out of your remit? Not necessarily because there are ways to secure a car even if you don’t have the money in your account. All you have to do is carry on reading and take the following into consideration. They may be the difference between new wheels and catching the bus for the foreseeable future.
Ask For A Car Loan
Like most things, there is a loan for a car. Wait there a minute, because there is even better news. A car loan is pretty easy to get hold of, too. In fact, it is one of the easiest lines of credit to obtain from a lender. The reason is that your credit score tends not to come into play. As a result, there aren’t many factors which will stop the dealership from saying no. So, all you have to do is walk in, ask to see a manager, and explain your situation. Usually, they will set you up with a line of credit which is sufficient enough to buy a vehicle of your choosing. As long as you can afford the repayments, there is no simpler way to drive away with a car the very same day.
But Don’t Be Ignorant
The fact that a car loan is easy to secure is enough to make most people giddy. Indeed, they get that excited that they forget to think about the long-term consequences. For example, lots of people will accept the first loan they find because they think it’s the only one available. You need to know that this is neither true nor savvy with regards to the deal. Dealerships will try and catch you out, but it’s important to be on the ball and know the ins and outs, such as your credit score. Once you know the rating, it’s simple to check whether you qualify for better rates.
And Keep It Short And Sweet
The problem with a car loan is the interest. The longer you are tied to a deal, the more you will have to pay. So, it’s a good idea to keep the loan as short as possible. Now, you should know that this tactic will increase the repayments. After all, they will have to be bigger to make up for the shorter loan period. However, that doesn’t mean you will lose money in the long run. If anything, it’s possible to save money due to less interest. Plus, lenders also charge higher rates for longer loans, which is another reason to get out of dodge ASAP. Although the rates look tempting, they are skewed to lure you into a deal. Instead of haggling over the monthly payments, opt to negotiate for the price of the car.
Visit A Credit Union
Getting a loan from a bank can be risky. That’s not to say it isn’t a good idea, but that people in the past have regretted their decision. If going to a bank doesn’t fill you with confidence, you can try a credit union. Simply put, loans like yours are the reason they exist in the first place. A credit union provides small to medium-sized advances, yet they have less stringent rules. An example is that the interest is a lot lower if you pay the money back in the allotted time. Or, some specialists deal in small amounts. You can find out more at by searching online or visit your local credit union. Either way, you should think about going smaller rather than bigger.
Make A Down Payment
Instead of asking for a loan where you end up owing more money than the car is worth, you can make a down payment. Normally, this means that the average cost of the loan decreases. So, the amount you pay back each month is smaller than if there was no payment at all. This sounds like a no-brainer, yet it isn’t always on the cards. It’s not that dealers won’t accept your money, but more that they don’t promote the method. As it happens, they make more money if you don’t put down a deposit, which is why people with good credit get the same treatment. Although it may cost more upfront, it will reduce the overall cost in the long run. For those of you that don’t have the cash, a family loan is always on the cards. Don’t worry because you don’t need a great deal, just five to ten percent of the price of the car.
Pay In Cash
As you can tell, paying per month turns out more expensive than paying by cash. The only problem is that you don’t have the cash to hand. So, how are you going to find it? There are several ways. The first is a cash loan which pays you upfront rather than opening a line of credit. You can find out more at CaptainCash.ca/loans/Ontario/Toronto if this tactic sounds interesting. Or, there is an electronic bank transfer if you have the money in your account. Some people still pay by check, but that is less advantageous because you have to wait for it to clear before taking the car. Just be careful you don’t come across as illegitimate if you withdraw the money.
Shop Around For Finance
Another method is to reduce the cost of the other expenses such as insurance. Car insurance is expensive, and that can add to the amount you need to pay for a car. After all, there is no point paying for a motor if you can’t drive it immediately afterward. By searching the Web, it is possible to reduce the costs. Visit Moneysupermarket.com for more information.
Hopefully, these tips will stop car finance from driving you up the wall.