Top Tips to Get a Car Loan - Coastal Motor Advisory

When you’re good to go, you can easily get the best car financing deal available with a helpful team of members to guide you along your way. Taking car loan and applying for car loans can sometimes be a little intimidating. What to watch out for when buying this or that pre owned or new car. Coastal Motor Advisory has the following expert guidelines on how to get a car loan.

1. Check Your Credit Score
   Before you get a car loan it is important to know how strong your credit score is. Lenders use your credit score to determine if you are eligible for a loan and what interest rate they will loan it to you at. If you are to borrow money you will be charged on an interest basis, and if you have lesser credit rating the interest is higher, conversely if you have better credit record the interest will be lower. If your score is low, you may bump the number up by ways like eliminating debt or even disputing information on your credit report.
2. Set a Realistic Budget
   What you also need to decide before heading out to the car showroom is how much money you can spend on the car. Work out how much you earn each month, and how much you spend to see which monthly payment feel good. Be sure to let the insurance, fuel and maintenance costs not slipped your mind. Budgets are useful as they help you not to spend more than you want to, and not get into too much debt.
3. Save for a Down Payment
   Indeed, some car lenders do provide you with car loans with no stipulation on whether or not they want a down payment, but it is best for you to come up with that down payment as you will be paying less for the loan. The down payment, 10–20% of the car’s price is not a bad idea. Plus, it’s testament that you’re responsible — this is useful to know when you will have to borrow.
4. Check out how much you are paying when you buy an insurance product.
   That is why someone compares the different lenders offering the loan in the market. Check out what several banks, credit unions and web lenders are offering. It simply means you’d save a lot in the future – a small difference between interest rates. If you know the lender, you will get the best rate by going direct to them; get plugged in to the right lender for your situation with Coastal Motor Advisory.
5. Get Pre-Approved
   Before going out to buy a car at a dealership, it’s always best to apply for pre approval on auto financing. Second, this will help you know your budget, so when you go to car dealers you are a more powerful buyer. You will also know exactly what terms and rates are available to you which will allow you to avoid nasty shocks.
6. Choose the Right Loan Term
   Run the typical 36 to 72 months. While longer terms will mean you’ll pay less each month, the tradeoff is that you’ll pay more in interest over time. Choose the loan with the amount of time you can afford to pay it back in, and pay the least amount of interest charge. Just make sure you remember that if you take a short term loan you will also own your car faster.
7. Never buy a vehicle from ‘Buy Here, Pay Here’ dealers.
   A lot of the car dealerships out there do the buy here, pay here, and all for those options they have they have it right there in the dealership—they are expensive financing. Often, one would also want to use credible lenders whenever possible to avoid being ripped over the quick buck or get the best terms and rates on the loan.
8. Read further of Terms and conditions.
   Normally, one should not sign such an agreement if he hasn’t read the details. Check that the interest rates, length of time the loan will be paid off over and also any other charges are all ok – don’t just sign up with the first guarantor company you come across. Ask about anything, if you did not understand a thing or just wanted to understand it even better. You shall also not lack a lender you can be sure will keep you updated on what they need from you.
9. Consider a Co-Signer
   If your credit score isn’t the greatest and you can not get yourself a loan loan and you are struggling to get yourself loan approval, then you may take a loan with a friend or a family member or co sign so that you are more likely to get approval for the loan. If you can get a good co signer with good credit it can help get you approved and in some cases it can help you get a better interest rate deal as well.
10. Avoid Taking on Too Much Debt
    Of course, it would be easier to get a much bigger loan, snag a better car, but that will put you way under too much financial stress. Stick to the set budget and don’t shoot for the moon and trying to spend more that you can. It’s because you have other things going on with the car aside from just that loan; as long as you have the car, there is going to be some expense.

Conclusion

Applying for a car loan is dead easy. Following these tips will give you the best chance of getting the best financing terms and getting what you want of a car without spending more than necessary. Luckily for you, we will help you locate the best possible car to purchase and the available best loan deals at the time of the sea through Coastal Motor Advisory.

When looking to buy a new car and in need of a car loan, or if you have a car loan, you will need the expertise of the experts at Coastal Motors Advisory to get you the right car loan. Feel free to use this contact form, should you wish to get in touch with us, and we’ll get back to you very soon!