A Beginner’s Guide to Financing Your Car

While most Americans have to finance their cars when purchasing them, information on car loans can be sparse or overly complicated when you can track it down. Some articles can consist of up to three pages of information on car loans, yet only cover one basic step. We here at 56 Auto Sales want you to have the best loan available, so we’ve compiled a short informative guide on how to best finance your vehicle! Once you’re ready, come into our dealership in London, Ohio, and view our extensive inventory.

Build Your Credit

While there are loans available for people with bad credit, if you can, we advise you to recover your credit as much as possible before applying for a loan. This usually entails paying off old debt and paying bills on time. Ideally, you would like your score to be above 700 before you begin applying. 

Budgeting And Saving

Our best piece of advice for you is to budget your income before selecting a car. While a loan may allow you to afford a higher sticker price you’ll still fall into debt if you can’t afford your monthly car payments. Ensure you’ve allocated enough money for your normal bills and savings expenses before calculating your monthly allowance for your car. 

It’s also important to calculate how much you can afford on a down payment. The higher your down payment is, the better your loan will be. If you can’t afford a 20% down payment or more, it’s time to start saving. Wait a few months before buying your car to save up. You can use that extra cash you’ve budgeted for future car payments to save up for your down payment.

Selecting Your Car

Now that you have your budget set you can start looking at cars for sale! However, before you begin we advise you to make a small list of features you’d like your car to have. A few examples might be four wheel drive or great gas mileage. You can also write down features that you believe are nice perks, but not mandatory attributes. This will keep you from overspending on a model with unnecessary amenities or having buyer’s remorse when your new car is missing a key feature. 

Applying for a Loan

Feel free to apply for a loan at multiple places, as it’s important to know that you’re getting the best offer available. However, we do advise that you apply for a loan at your local dealership as well! Dealership loans are often more competitive and as a result, can have better rates or more flexibility. Once you have your loan, we advise you not to spend it all. Keep to your previously outlined budget. The less of your loan you use, the less you will have to pay off! 

We here at 56 Auto Sales proudly serve the surrounding towns of Springfield, Dayton, and Columbus, Ohio! For those who are interested in financing with us, but aren’t quite ready to make the drive, you can apply for a loan online, here! Or call us to speak with one of our experienced sales professionals at (740) 908-4289.