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HOW MUCH OF YOUR CAR SHOULD YOU FINANCE?
Buying a car is an investment. However, there a lot
of extra costs involved in owning a car, i.e. gas,
maintenance,
auto insurance, ect.. All of these costs can end up
costing you a lot of unanticipated money.
Learn
how to save money on gas!
When in the market for a car, the first thing you need to
do is determine how much you want to spend. One a price
range is determined, you will need to calculate how much
you want to leave as a down payment...then you will be in
a good position to negotiate the best price possible for
your car. Try using the
car loan calculator to help determine what you can
afford as your down payment and purchase price.
Don't look to minimize your down payment by accepting long
financing term. If you choose to trade-in or sell your
car after one or two years, you will owe more on your car
than it is actually worth. This is called
being upside-down on a car loan. In order to avoid
being upside down, you should always look to leave a
down payment of at least 20%.
Once the purchase price of your car is finalized, it is
likely that the dealer is going to offer you financing.
Be leery of
dealer financing. They make a lot of money from the
financing contract and will look to get as much out of
you as possible. Star Loan Services will get you the
financing you need, minus the stress. Low auto loan rate
programs for people of all good and bad credit types.
Learn more about the
auto loans we offer.
APPLY NOW FOR AN AUTO LOAN!
Auto Loan Tip:
It is important to negotiate the price of your car before
you even mention that you are interested in dealership
financing. If the dealer knows before hand that you plan
on utilizing their financing, they will try and take
advantage of you by giving you a lower car loan rate for
a higher price or vice versa.
As mentioned, obtaining a car loan from a dealer is not
always the best idea. In addition to applying for an auto
loan with Star Loan Services, you use the equity from
your home for a car loan. When using a
home equity loan
or
line of credit, you are borrowing against the value of
your home. Learn more about
building equity.
Not only are the interest rates associated
with these types of loans are usually lower than auto
loans, there are
tax deductible. It is important to note
that using the equity from your home to purchase a
depreciating asset that can be stolen or totaled in a
car crash is a risky.
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