| Is it possible to own a new car, even if you | | | | lenders require a down payment of twenty |
| don't have $20,000 to spend? Absolutely. Auto | | | | percent of the vehicle price. Remember that |
| loans make car ownership an affordable | | | | the value of your current vehicle may be |
| reality, and virtually anyone can arrange for | | | | applied toward your down payment. |
| financing. If you have sufficient income and | | | | |
| a good credit rating, you will be able to | | | | Step 5 |
| choose from a selection of auto loans. | | | | |
| | | | Once you know the type of car you're buying, |
| Step 1 | | | | the purchase price, the available rates and |
| | | | the amount of down payment you'll need, it's |
| Choose your wheels before arranging your | | | | time to shop for a lender. Be careful in this |
| loan. The bank or finance company will want | | | | step, as there are many shady lenders who are |
| to know what you're buying, and how much | | | | quick to hand out cash in exchange for very |
| you'll need to borrow. Shop around by | | | | steep repayment amounts. Compare interest |
| checking automotive websites and visiting | | | | rates, the loan term (two years, three years, |
| local car dealers. Once you know exactly what | | | | etc), monthly payment amounts and, of course, |
| you want to buy, you can negotiate a price | | | | how much you're able to spend. These factors |
| with the seller. With price in hand, you'll | | | | will all help to determine your choice of |
| find it easier and faster to secure your | | | | lenders. |
| financing. | | | | |
| | | | Step 6 |
| Step 2 | | | | |
| | | | Don't panic if you don't qualify with the |
| Shop around for the best interest rates. | | | | first lender you choose. There are literally |
| There are online websites like that publish | | | | endless auto loan options available to you. |
| surveys and polls of loan rates across the | | | | Just be sure that you're not living beyond |
| United States. The rates of auto loans will | | | | your means. You may need to save a little |
| fluctuate with the market, and they | | | | more to come up with a bigger down payment, |
| definitely differ from lender to lender. Shop | | | | or simply choose a less expensive car. |
| around to find the lowest rate and best | | | | |
| lending terms. Checking with local banks, | | | | Step 7 |
| credit unions and even car dealers can save | | | | |
| you money. | | | | It's easy to create a lousy credit rating, |
| | | | and the poor rating can hound you for a long |
| Step 3 | | | | time. If your credit rating is keeping you |
| | | | from securing an auto loan, you can begin |
| Purchasing a new car is a costly, and | | | | working to rebuild it. Pay your bills on |
| sometimes risky business. Auto loans involve | | | | time, and clear up any outstanding debts. |
| a lot of money, and you need to prevent any | | | | After six months, you'll be able to reapply |
| possibility of getting ripped off. Check with | | | | for a new credit rating. If this is not an |
| used car values to see how much your current | | | | option, you can choose to look into bad |
| vehicle is worth. Knowing your car's value | | | | credit auto loans. Insurance companies that |
| will help you to get the most money for your | | | | offer bad credit loans don't require their |
| trade-in. Consult a black book or research | | | | customers to submit their credit histories, |
| online to find the current market value of | | | | so it is possible to secure an auto loan |
| your vehicle. | | | | despite poor credit. However, remember that |
| | | | the financer will view you as a risk, and you |
| Step 4 | | | | will pay higher rates. |
| | | | |
| Determine how much you're able to spend as | | | | Auto loans make it possible for virtually |
| your down payment. Providing cash up front | | | | anyone to buy a new car. It's why you see so |
| can help you to secure an auto loan, as it | | | | many new vehicles on the road today. If you |
| proves to the lender that you're responsible | | | | think you can't afford the car of your |
| and willing to repay. It also decreases the | | | | dreams, shop around. You might be surprised |
| amount of principle and interest you'll pay | | | | at what you find. |
| throughout the term of your loan. Some | | | | |