Buying a New Car? How to Finance a Major Purchase
A car is one of the most expensive items that you will buy in your adult life. While it may be possible to buying a new car for cash, it often makes more sense to finance the purchase with a loan.
Let’s take a look at some strategies that you may be able to use to obtain favorable financing terms.
Do You Have Equity in Your Current Vehicle?
If you have positive equity in your current vehicle, it may be possible to use it as a down payment on the car that you’re about to purchase.
You may also be able to save money on sales taxes if you trade in your current car, truck, or SUV.
A variety of automotive websites offer tools that allow you to estimate the value of your trade before you visit a dealership.
Let the Folks at Bay Ridge Nissan Help You
The finance team at Bay Ridge Nissan can talk more about financing specials, manufacturer rebates, or other discounts that may make your next car more affordable.
They may also be able to discuss the process of obtaining a car loan and the factors that lenders consider when evaluating your loan application.
In most cases, you should receive a loan decision minutes after submitting a request for financing.
Seek Financing from a Local Bank or Credit Union
You do not have to obtain financing through a dealer or through a bank that your dealer has a relationship with.
In some cases, you may have an easier time getting approved for a loan with a local bank or credit union than you would by applying at the dealer.
This is because smaller financial institutions are just as interested in developing relationships with members of the community as they are in making a profit.
Ask Friends or Family Members for Money
If you can’t get a loan from a bank, a friend or family member may be willing to lend you the money needed to buying a new car.
It is important to draw up a formal loan document to ensure that the money is repaid in a timely manner.
Repaying the loan in a timely manner minimizes the chances that money issues put a strain on your relationship with an important person.
Having your own vehicle can make it much easier to fulfill social, professional, or other obligations.
However, it is important that you obtain transportation that fits your needs while also fitting comfortably into your budget.
Category: Car Purchase
