How to finance a car with you holding the winning cards!
Almost all of us need a car. However, cars are one of those pricey items for which we usually don’t have the cash to pay up front. So, the question becomes, how to finance a car purchase that doesn’t leave you maxed out on your monthly cash flow. If your current vehicle is a dead one, you’ll need 100% financing. If your car is still saleable, you should advertise it through the classifieds or by word of mouth, in any case, you want a quick sale, for obvious reasons, cash talks! When you consider all the factors in how to finance a car, your objective is to buy a car that will satisfy your needs while not breaking the bank. Here we offer some tips on financing a car, to your best advantage. Let’s see how this works.
Let’s start with the worst case scenario: you either have a dead car or no car at all. In this case, how to finance a car may seem an impossible quest. Not so. If you have a decent credit score, you’ll find many takers in the car selling world, some better than others. The local used car dealer, for example, has financing companies just itching for your business. Granted, their APR may be less than attractive, but if you absolutely need transportation, this is a viable option.
Even in this worst case scenario, you can finance a car and have transportation the same day. However, be aware that you’ll be paying a hefty price for this necessity. Look over your finances and see how much you can squeeze out of your budget for a good down payment. The larger the down payment, the less interest you’ll pay and the shorter term and monthly payment will be.
On the other hand, if you’ve got a car that still works, you’ve got a hand up on how to finance a car. Sell it through a private party, or use it as a trade-in. Be sure to check the Kelly Blue Book to assure that you get a fair price. Keep in mind that a bank won’t finance a car that’s more than 9 years old.
The easy answer on how to finance a car? Go to a used car dealership, they’ll have a financing option available, almost assuredly with a less than enchanting APR. Your better bet is to shop your financing, beginning with your own bank or credit union.