Always know your credit score, because it determines the interest rate you can get on your car loan. If you don’t have a credit score, or your credit score needs improvement, there are a few steps you can take. First, make sure to pay your bills on time, pay down your credit cards, charge less on your cards, and avoid over-utilizing your credit.
Save Up For A Down Payment
To lower your monthly payments and the amount of interest you pay over the long run, try to put some money down on the car to keep the amount borrowed lower. It’s a good idea to save up for a down payment, putting aside a manageable amount of money every month until you reach your savings goal. Experts recommend a down payment of at least 10-20 percent of the car’s value. Even if you can’t save up that much money, a small down payment is better than none. Without a down payment, you’ll end up paying more in interest.
Trade In Your Old Car
In addition to your down payment, consider trading in your old car. On our website, you can use helpful tools to value your trade-in vehicle. To get a better trade-in value, clean your car inside and out, fix any cosmetic damage it may have, and bring in receipts to prove any major repair and maintenance you’ve had performed on it in the last six months.
Have A Budget In Mind
Whether you’re buying a new or used car, it’s a good idea to have a budget in mind. Have a list of features you need your vehicle to have, such as seating capacity, fuel economy, and tech features. This will help you focus on what you need, so you don’t overspend later.
Need help with financing? Come visit our finance department at Larry Jay Mitsubishi.