How to Finance a Car: A Step-By-Step Guide from freemexy's blog

It’s common for car buyers to put most of their effort into finding the perfect car, and only think about financing at the end of the journey. While getting the right vehicle is critically important, figuring out how to pay for it and getting a car loan are also critical parts of the car-buying process. Figuring out your budget and financing can help you gauge how much car you can afford, helping you narrow your choices. To get more auto news today, you can visit shine news official website.

Few buyers can afford to pay cash for the full price of new- or used-car purchases. Instead, you’ll need to get an auto loan to cover either the entire cost of the vehicle or a substantial part of it. Getting a bad car finance deal can force you to pay extra each month or wreck your credit history for years. Your loan payment is just one piece of the cost of owning a car. It needs to fit into your budget, while at the same time paying down the balance as quickly as possible.

“Do your homework, and make sure it’s not just about ‘hey, I want to pay $300 a month,’” says Erin Klepaski, executive director of strategic alliances at Ally Financial. “Really make sure that vehicle meets your needs – that you can insure it, that the fuel economy makes sense for you, you can drive the number of miles you need, that it has the functionality that you need, so that you get that whole package and that total cost of ownership experience, as opposed to shopping the vehicle payment.”

Our new car rankings and used car rankings and reviews will help you find the right vehicle, while the following steps will guide you through getting a great deal on your car loan.

It is common for car buyers to put off the thought of financing until they are in a car dealership’s financing office. That's, unfortunately, a path to potential financial calamity. Smart car buyers know precisely how much vehicle they can afford and have a plan in place to finance their new ride before they even think about heading to a dealership. You might end up with dealer financing, but if the dealer doesn’t have an offer to beat they’ll have no incentive to give you a more affordable deal.
Here are seven steps to take when financing a new or used car:

Learn The Language of Lending - Know all the finance terms that are likely to be used when you’re looking for a car loan.
Get Your Credit Score, and Understand Why it Matters - Understand what your credit score is and why it matters when you are financing a car.
Find a Good Financing Deal - Learn where and how to get car financing that you can afford.
Apply for a Car Loan the Right Way - Learn the steps to apply for a car loan.
Look at Dealership Financing Offers - Compare your preapproved auto loan to an offer from a car dealership.
Finalize the Deal - Sign the loan paperwork and close the deal.
Take These Extra Steps After You Have an Auto Loan - Learn what happens after you finalize the deal.

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