A car is something that people usually buy after a house. Houses always come first because it serves as a shelter to every person. Most people buy a house using their hard earned money or getting a home bank loan.
Some other people also apply for a loan to buy a car. Used or brand new, it doesn’t matter as long as it’s working in excellent condition. Not so sure about buying a car? Here are some questions that may help you with your decision:
Questions You Should Ask Yourself Before Buying a Car
To find the best deal for you, here are the top six questions you should ask yourself (and steps you should take) before you buy a new car.
- Are You Upside Down On Your Current Car Loan?
You may know people who decided to buy a new car, only to find that they couldn’t afford to because they were “upside down” on their current loan. Welcome to the 60-month (or longer) car loan.
There was a time when car loans were a standard 36 months. Gradually, the terms became longer to enable more people to qualify for loans they couldn’t really afford by lowering the monthly payment. But while the monthly payment may have become more affordable in the short-term, the longer loan term ultimately equates to paying more in interest over the long-term.
If you have finally decided on buying a car and getting a loan for it then prepare yourself in gathering all required documents that can prove yourself worthy of getting the loan and being able to pay for it. Here are some tips on getting your car loan approved:
Car Loan 101: Quick Hacks to Loan Approval
Another concern troubling a car buyer is whether or not the loan offer you’ll get from the first bank or lender is the best you can get. These worries need not remain on your mind since our in-house loan advisers have given us tips on how to speed up your car loan application’s approval:
- Pay off your other credits
Having existing, unsettled credit is a major turn off for providers. Lending money to someone who doesn’t seem to show good payment behavior is such a risky move. Preferably, you should aim to show a good credit history to the lender. But if you really have an existing credit you just can’t pay off soon, just make sure to submit documents showing your capacity to pay. Making the lender see that you’re capable of paying the loan on top of your current credit is the most important thing.
If your loan was not approved, you can always reflect on why it happened or directly talk to a bank representative about improvements that you should do with your application so that your loan can be approved in the future.