What to do before applying for a car loan
Depending upon where you are in life, qualifying for a car loan can take little time and effort. If you are thinking about your next vehicle purchase, it’s important you are prepared before starting your search.
Here are three things to get you ready for that process.
BUDGET, BUDGET, BUDGET: Before you slap down thousands on a new ride, you need to know if you can afford it – and how it fits into your daily, monthly and yearly lifestyle choices. From the monthly payment and insurance, to re-fueling/re-charging and vehicle maintenance, you have to understand the full cost of vehicle ownership before you shop.
LOAN OR LEASE: For those that pay for their vehicles in full at the time of purchase, this isn’t for you. However, for the rest of us, we have two primary choices to financing a new or pre-owned vehicle: a loan or lease. With a loan, you own the vehicle by completing the terms where with leasing; you have to return the vehicle following terms of the lease. Determine the best option by consulting with your lending institution or researching the different financial products that are available.
CREDIT SCORES: Another bit of information you’ll want to know is your current credit score. You can check your bank or credit union, or reach out to a national credit agency (Equifax, Experian, etc…) to grab a copy of your credit score. It helps lenders determine if – and how much – they will be able to lend and what your overall credit health looks like.
Purchasing a new vehicle is often a multi-step process. Be sure you are thorough at every step. Once you have an idea what your budget looks like and how you would like to purchase your next vehicle, you can explore our inventory of vehicles at HendrickCars.com to see what best fits your transportation needs.
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