by sree6020 » Fri Feb 21, 2014 06:12 am
Determine your budget
With low interest rates on auto loans, it’s a great time to buy, but first you need to set a budget. Decide how much you want to put down upfront and then what you’d feel comfortable paying monthly. It’s important not to just consider the price of the car itself; you also take a look at all the costs associated with the car. Be sure to factor in the cost of gasoline, maintenance, and auto insurance. You also should investigate the cost of repairs and tires.
Your budget also will be important in the way it affects your credit score. You likely already know that your credit score will have a great effect on your interest rate. But you might not know that it also will affect your auto insurance. Car insurance providers consider credit to be an indicator of your risk of filing a claim – the better your credit, the lower risk they assign to you.
That means it’s a good idea to keep your finances under control for several months leading up to your purchase. Pay your bills on time, and watch your debt to income ratio. Luckily, if you’re credit isn’t amazing, you can use a service such as DriveTime.com to help you buy a car and then get to work on improving your finances.
With low interest rates on auto loans, it’s a great time to buy, but first you need to set a budget. Decide how much you want to put down upfront and then what you’d feel comfortable paying monthly. It’s important not to just consider the price of the car itself; you also take a look at all the costs associated with the car. Be sure to factor in the cost of gasoline, maintenance, and auto insurance. You also should investigate the cost of repairs and tires.
Your budget also will be important in the way it affects your credit score. You likely already know that your credit score will have a great effect on your interest rate. But you might not know that it also will affect your auto insurance. Car insurance providers consider credit to be an indicator of your risk of filing a claim – the better your credit, the lower risk they assign to you.
That means it’s a good idea to keep your finances under control for several months leading up to your purchase. Pay your bills on time, and watch your debt to income ratio. Luckily, if you’re credit isn’t amazing, you can use a service such as DriveTime.com to help you buy a car and then get to work on improving your finances.
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