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-   -   Car loan., what's the best way to do this? (https://forum.dvdtalk.com/other-talk/477640-car-loan-whats-best-way-do.html)

NaturalMystic79 09-14-06 02:07 AM

Car loan., what's the best way to do this?
 
I've never had to take a loan until now. I'm finishing grad. school in December and was wondering if I did apply for a student loan now to get situated, that it would be smart because it would be subsidized by the government and I'd have a lower interest rate? I have a job I'm starting as soon as I graduate in December, so I will have a steady income very soon. I'm planning on buying a car a shade under $20k. Would it be best to get the loan than finance the car, so I am not paying so much money at one time? Also that way I'll have enough money for car tax, insurance, gas, etc. I'm a totally newb to this stuff, and wanted to get your guys opinion first since there are knowledgeable folks here.

kneijst1 09-14-06 06:55 AM

Best advice I've ever heard with buying a car is to pay cash. If you don't have that much money, see what you can afford with the amount of cash you have.

Heat 09-14-06 08:48 AM

While it is true that the best way is to pay cash, this guy is just getting out of college (albeit at 27).

What rate would be the student loan be at if you were to take it?

And in general, here are the steps to take if when buying a new car:

1. Save up at least a couple thousand for use as a down payment. If you donít have a couple thousand, just make car payments to yourself for five months or so. If you canít afford to make car payments to yourself then how are you going to make car payments to somebody else?

2. Check your credit history at www.annualcreditreports.com , you can get the report from all three agencies once a year. (DO NOT go to freecreditreports.com, that is a pay site).

3. Find out what your credit score is (will cost $10 or so). If itís low (say, below 725 or so) consider building up your downpayment a little more.

4. Call or stop by at least four different banks and one credit union in your area. Find out what their rates are on new car loans. Ask how much they will loan, as a percentage (some wonít loan 100% of the value of the car since the car depreciates the moment you drive it off of the lot). This is important because when you go in, theyíll be trying to get you to finance through them. You have to know what the local rates are.

5. Once you get all of this done, do some research on what you are looking to buy. Check out www.carbuyingtips.com for some scams to watch out for, as well as tips in getting the best price. Donít think that you have to buy from your local dealer Ė be prepared to travel to pretty much every dealer in 100 miles or so to see what they have and how much theyíll work with you on price. Iíve only bought two new vehicles but have found that I have better luck at dealerships away from where I live because when you visit a far away dealership, they know that if you leave you wonít be back.


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