Auto Loan Tips

Before you apply for a loan…
Educate yourself about financing when you are shopping for a car.

Guidelines and Tips in your pursuit of financing
Find a lender that will work with you before you decide on a car. After you provide your personal contact information, the credit specialist will work with you on what you can afford and on what terms so that you can make the right financial decision.

Do not overextend and put yourself in a bad position. Know your limit and then choose accordingly. Be smart. Possibly consider a vehicle that you are happy with but may not be exactly what you want but will accomplish what you need, with a shorter term auto loan. You will save a lot of money on interest, build back credit faster and improve your fiscal outlook.

A pretty fair barometer in considering a monthly budget to finance a car payment, is to spend no more than a maximum of 15% – 20% of your gross monthly income. This is to play it safe and smart. So for example, if you earn an income of$3,000 per month, you should spend no more than a maximum of $450 – $600 on your car payment. This is only a gauge that looks at the entire picture of fiscal responsibility so that you do not over extend yourself and get into further debt. income

The Costs of a Car
A lot of car shoppers tend to overlook some of the costs associated with acquiring a car or choosing the most appropriate vehicle for their current situation. As such, there are many facets to consider and opportunities in which you can save money throughout the car buying process to avoid further or higher costs. Examples include insurance rates, fuel efficiency, taxes and repairs. Further details are below.
Therefore, the type of car you buy and the specific model you choose will both play a factor in the additional costs associated with your monthly payment and future payments. Look at the big picture before making any decisions. Get perspective on what position financially you want to put yourself in before it is too late.

What to Look For
If you’re on a tight budget, it is important to look at all of the factors that go into the price of a car. Sure, the sticker price is the most obvious expense. You wouldn’t buy a $25,000 car if you could only get a loan for $10,000. But it’s not just the price of the car that you need to watch out for. Here are some less than obvious expenses that people tend to overlook while shopping for a used car:

  • Insurance rates – Most commonly, sports cars and expensive vehicles have higher insurance rates. Safer, smaller and cheaper cars will have much lower insurance rates.
  • Fuel efficiency – This one is pretty obvious since we all have to fill up at the pump.
  • Repairs – An old car might be a bargain at the dealership, but for good reason. You’ll be paying a lot more in repairs on an old car that has high kilometers on it. If you consider regular maintenance like oil changes and new tires on top of brake or transmission issues, that bargain doesn’t look like such a deal anymore.
  • Backend costs – Dealerships will always try to sell you extra things at the end of a sale like rust and paint protection. Many of these are equivalent to snake oil but there may be some packages you may want to research and see if the benefits of buying it upfront will outweigh the potential costs down the road.
  • Tax, Title and License fees – One of the more commonly overlooked costs of buying a vehicle is the one that every car sale requires. You must pay the tax, title and license fees associated with the car in order to legally drive it. While it might not be the factor that sways your car buying decision, it is important to know how much these fees will be before signing on the dotted line.
  • Warranty – This is an especially important aspect to consider when buying a used car. The older the car, the more repairs will be needed to keep the car running and in good shape. A warranty is worth considering in order to keep your out of pocket costs down at the mechanic.

Make sure you have your finances in order, not only for the cost of the car, but also for the added expenses listed above.

Make sure the car you are looking to buy is not a lemon!
Get a complete accident / damage report of the car you are looking to acquire. Also check for liens and recall information.
Visit Car Proof Vehicle History at

“You need to have credit to get credit”
Getting the opportunity to show your credit-worthiness is an important step in rebuilding your credit, and in time, raising your credit score. We will help you secure auto financing and get your vehicle of choice. The credit specialist will work with you to make consistent payments in a timely manner,thereby rebuilding your credit and thus improving your credit score.