HOW TO FINANCE A CAR
If you’re interested in getting a new or used vehicle near North Andover, Peabody, or Danvers, you’ll need to determine how you’ll pay for it. The most common way that drivers buy a car is by taking out a loan.
1. KNOW YOUR CREDIT HISTORY.
Before you can APPLY FOR A CAR LOAN, it’s important to know your credit score. This 3-digit number can range from 300-850, and is taken from three main credit bureaus: Equifax, Experian, and TransUnion.
2. KEEP THE LOAN TERM SHORT.
When it comes to the length of an auto loan, you may think it’s better to keep it longer, so that you can make lower monthly payments. But that’s actually a common misconception.
When you’re taking out an auto loan, paying $300 a month is certainly more appealing than $400. However, the only way that can be done is extending the loan term, since the overall price of the vehicle won’t change.
So, you may be tempted to stretch a loan term out to five or six years. But, that’s not recommended when it comes to interest. The longer you pay off a loan, the more interest you’ll pay. What started off as a nice $300 a month could well exceed the $400 that you didn’t want to originally pay.
3. APPLY A DOWN PAYMENT AND/OR TRADE-IN.
A great way to keep both your interest rate and monthly payments low is by applying a down payment and/or trade-in right from the beginning.
CONTACT US FOR MORE INFORMATION
IF YOU NEED MORE INFORMATION ON HOW TO FINANCE A CAR NEAR NORTH ANDOVER, PEABODY, OR DANVERS, THEN CONTACT US AT IRA LEXUS OF DANVERS. AND WHEN YOU’RE READY TO TAKE OUT AN AUTO LOAN ON A NEW CAR, THE EXPERTS AT OUR FINANCE CENTER WILL HELP YOU OUT.