What are some things that I should know before financing a car?
"Is there anything I should know before applying for a car loan? I am planning on buying a new car soon but this will be my first time financing a car."
“You should know what your financial situation is, including:
- your credit score
- your net income
- your down payment amount
- the lender’s requirements are
If you don’t think you will qualify based on that information, you should not apply to that lender.
You should also shop around for a loan before shopping for a new car.
Apply to as many lenders as you think you will qualify with as you can in a 14-day period. All credit pulls within a 14-day period count as one hard inquiry and have less of an effect on your credit.
Pick the one with the lowest interest rate or the one with the terms that fits your needs. You should always get pre-approval and should rarely go with dealer financing.
Following these steps will allow you to best negotiate a final asking price on the car that you want.”
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