How To Purchase Your Next Automobile

In a persons life there are two types of major purchases, buying a home and leasing or financing an automobile. With banks or finance company's offering rates as low as 1.9 percent on auto loans, one question remains how does one fit in the market place or how should one purchase an automobile? Before I explain how to purchase, then acquire financing an automobile there are two main items every consumer should be aware of and that's their budget or credit rating.

(1) Anyone that is interested in purchasing an auto should know their credit score, before they try to obtain any type of auto financing . The reason for this because a persons credit score or rating should be at a certain number in order to obtain financing. Scores ranging from 660-840 are considered above average scores and these types of credit ratings often get the best rates. Scores below these numbers sometimes command higher rates ranging from 8.5 percent and as even high as 27 percent, depending on that individual credit rating. Knowing your credit score or rating before a loan officer or a finance manager at car dealership, pulls it can help one avoid making costly mistakes. It can also save the consumer time, money and can keep them from being aggravated or frustrated during the buying process.

(2)Know what one can afford or their budget. Knowing this very important information can help a person from getting in debt or above their heads. Everyone should have a budget, know their limits and what they are willing to pay per month, including automobile insurance. Most major car dealerships will do everything in their power to maximize or make money on every customer. They will not only try to make a profit, but also try to make rate, then up sell them on items such as Credit Life, Disability, Gap Insurance and Automobile Protection plans.These items have a long rang of prices and can add as much as 40 dollars per payment.

How to purchase your next Automobile? By being smart, doing a little research, know your own credit score and also by knowing what you can afford. Always remember that everything can be negotiated , from the price of the automobile, interest rates from the banks and even the price on added items such as Automobile protection plans. The smartest thing anyone can do if they happen to have a good credit score, is to acquire a auto loan before they enter a car dealership. That way they will be in control of the buying process. For those with bad or limited credit you too can negotiate your interest rate to a limit. Because sometimes car dealerships are at the mercy of the banks or leading institutions and have no choice but to charge a higher rate. People with credit problems or issues should be prepared to prove their income and their residence. Most banks require an average income of $1800 a month to qualify for a loan. Its always smart to know your own situation before you decide to purchase a automobile. Always keep in mind that most sales people only make money when they make a sale, so please don't waste their time if you aren't really interested or serious about purchasing a automobile. Knowledge is power, the more someone knows about their own situation the easier it will be when one purchases their next automobile.

W.A.N.