| Getting approved for a loan is always the ultimate goal | | | | showroom floor? Think again...very carefully. Even |
| when you apply and it can be tough if you don't know | | | | though you may be told that the numbers indicate that |
| the ropes. Several alternatives can make it easier for | | | | you qualify, you still may not be able to afford it. This is |
| you though. You can always go the bank or credit | | | | where honesty should take center stage. Your |
| union route for approval. This process of course will | | | | thoughts should be centered on what the monthly |
| scrutinize your credit rating closely. It will greatly | | | | payment is going to be, and how you're going to make |
| improve your chances of going through if you have | | | | the payment each month. Be patient, go through as |
| steady income, a good job history, and a favorable | | | | many offers possible before committing. The real prize |
| credit report. | | | | will be to walk away with the car of your choice and a |
| A Warning | | | | low-interest loan to pay back. |
| It's no secret that sometimes choosing how the car is | | | | If you belong to a credit union, this should be a good |
| going to paid for can be more difficult than choosing | | | | place for you to start looking. Credit Unions can offer |
| the car itself. What makes it so difficult is there are | | | | some great rates for members. Another option is to |
| what seems like an endless array of financing options | | | | go online. The loans are about as diverse and |
| to choose from. Some options are going to be good, | | | | numerous as the websites themselves. There are a lot |
| and others are not going to be as favorable. You can | | | | of competitive deals to be found. Online shopping only |
| either end up with the car of your dreams, or you can | | | | takes a moment of your time, and based on your |
| walk out with a loan deal that will leave you upside | | | | present credit, may be able to give you a better deal |
| down-thus affecting your financial peace of mind for | | | | than a dealership can. |
| years to come. | | | | Then there is the dealership car loan. A lot of people |
| More and more people are finding themselves upside | | | | will warn you about this route, and often with good |
| down in their new car purchases, especially people | | | | cause. But, if you do your homework and walk in with |
| with credit problems. The car dealer shows you a car | | | | options in hand, you will be negotiating from a position |
| that deep down, you know you can't afford...until he | | | | of power. Make sure you're up on any dealer rebates |
| shows you how you can! Don't fall for it. You can | | | | as well. In the end, dealerships know they have a great |
| easily end up in a lease or worse an 72 month loan! | | | | deal of competition, and will do what is necessary to |
| First Things First, Budget! | | | | make the loan go through. |
| Before you go to the car lot, do an honest budget. | | | | There will of course be those of who don't want to |
| Calculate your net income (what you actually bring | | | | commit to a lengthy car loan deal. For the chosen few, |
| home after taxes and other deductions) and deduct all | | | | there is always the leasing option. You may find your |
| your bills and see how much free cash you have per | | | | payments to be a lot lower, because you actually wind |
| month. If paying for a car and insurance will leave you | | | | up paying for depreciation, and not equity. Be careful |
| at zero available cash for an emergency, you need to | | | | on this one so that you don't end up with overpayment |
| budget a little harder and cut financial corners where | | | | for overage fees, which can sneak up on you. Do the |
| you can. | | | | homework, and you'll come out the real winner. |
| So you think you qualify for that beautiful car on the | | | | |