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Vehicle Loans - Good Credit and Loan Tips By Sydney Davidson

There are a huge variety of vehicle loan options available today. There are many factors which, can help you get the loan which best suits you. The starting point is your credit rating. Get a copy of your current credit score and examine it in detail. If there are any errors in it, get them corrected immediately. Also look at ways you can improve your credit rating like reducing or paying off any long outstanding loans or just reducing your debts as a whole. The fact that you are in a stable condition and have been living in the same place for a year is an important factor for the potential lender. The same applies to your job. If you have recently changed it, wait for at least 6 months before applying for a vehicle loan. And remember that anything you do to improve your credit score will not appear overnight. Start planning and acting at least a month before you apply for a vehicle loan. While it is tempting to find the car of your dreams and then look for financing, the better way is to find out the trade in value of your old car which you will use for the down payment and amount of loan you are eligible for. Once you have your budget, shop around for a car you can realistically afford. Next you need to look at the term of the vehicle loan. Do you need a 60 month loan so you will be paying lower monthly installments? Remember that in this case your total interest will be more and the final cost of the car will be higher. Alternatively you can go in for a shorter loan duration of, say, 36 months where the installments are higher but the total interest is less? Remember that having a newer car at the end of the vehicle loan period will give you a higher trade in value if you want to buy a new car straight away. If the trade in value of your old car is more than the minimum down payment or if you have the cash to pay more, look at the possible benefits of a higher upfront payment. You can use a higher down payment to negotiate for either a shorter vehicle loan period or lower monthly installments. What you choose depends on what is better for you. Once you have the hard copy of the loan agreement in your hands, read it over carefully a few times. If there is anything that seems vague or that you do not understand, ask the finance company for written clarifications. If they say that these are generally accepted terms for vehicle loans and no clarification are required, consult an expert like a lawyer specializing in the subject. Even if you have no specific doubts but are still unsure if your understanding of the document is correct and complete, go to an expert for confirmation what you will be signing is what you expect it to be.

Buying a new car can be an exciting time, when you find the best choice of

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