Buying a new car is exciting and intimidating. In reality, many people don't have the cash to buy their cars and have to secure additional financing through car loans. Before taking a car loan, it's vital to understand how the monthly repayments will affect your credit and financial health.
Researching about the car you can afford and the available financing options will go a long way in helping you get the best car loan terms. It may even get you more value for your money. Knowing and accepting your financial position will ensure you get the vehicle you want while maintaining financial stability.
Oak Motors can help you get financing if you face hurdles due to a bad credit score. Read on to learn how to get car finance and how we can help you secure auto financing in Indiana today!
Check Your Credit Score
The first step when trying to get a loan for a car is to check your credit score to determine the amount you can borrow. Lenders have different credit scoring criteria to determine your creditworthiness. Checking your credit six months before purchasing your car will give you time to iron out any errors or incorrect information on your report.
Even though no minimum credit score is needed to be approved to buy a car, knowing your credit score in advance will help you narrow your lender search to your specific requirements. It will also prevent surprises as you start shopping for a car.
Set Your Financial Limits
Knowing how much you can afford to spend on a new car will determine the amount to borrow and help you plan your monthly loan repayments. During this step, you should also decide how much you can part with as a down payment. The more you put down, the lower the monthly payments will be.
The amount you are willing to spend should not exceed your take-home pay; hence it's critical to factor in your debt-to-income ratio. Lenders may be willing to give you additional credit if you have lower debt, extending your loan limit.
Find Your Car
After comparing the different loan terms and settling on the clear winner, confidently head to the dealership to pick your desired car. Before making any payment, make sure you understand the following financial terms that you'll hear at the dealership:
- Down payment. It is a percentage of the car's purchase price. This upfront fee will help lower the interest rate and monthly payments.
- Loan term. It refers to the duration you have to complete the loan repayment. Typical loan terms range from 36 to 72 months. Keep in mind that longer terms translate to higher total loan payments.
- Monthly payment. It is the monthly installment you must pay the lender on the agreed-upon date. Always shop around for competitive rates that won't strain your finances.
Take the car for a test drive to get first-hand experience operating it. Once satisfied with the driving experience, sign the necessary paperwork and drive off.
Car loans offer an affordable path to owning a vehicle while rebuilding your credit score. Car buyers should find financial terms that align with their current financial situations.
Apply For Oak Motors In-House Car Financing
The typical auto financing deals entail taking loans from traditional financial institutions. The high credit score requirements can deter new car owners from accessing financial aid. However, Oak Motors can make it easy to buy your car of choice. Our financing options cater to many customers, including first-time buyers.
At Oak Motors, we understand that life's mishaps can impact your credit score and limit your chances of owning a car. By pre-qualifying for our auto financing, you will get personalized financing terms that won't affect your credit score.
With our in-house financing, you will have access to the following benefits:
- Easier pre-approval
- Extended warranties
- Credit-rebuilding opportunity
- Availability of higher loan amounts if needed
- Personalized financing terms
Getting pre-qualified is quick and hassle-free, regardless of your credit score. Head to our webpage and fill out an online application. The earlier you fill out the form, the sooner we can begin working on your car financing.
At Oak Motors, we can help you get car financing approval even if you have a bad credit score. Contact us today, and let us help you get back on the road to success.Categories: Buying Information