For most car buyers, the look, smell, and feel of a new vehicle—even if it’s just new to you—is exhilarating. But before getting caught up in the excitement of your next vehicle, it’s important to understand how much car you can truly afford. No one wants to be in over their head financially, no matter how nice that new ride may be!
Are you nervous about taking on debt for a new (or new-to-you) car? While it’s wise to avoid unnecessary debt when possible, it’s good to understand that there are several legitimate reasons why you might need to take on debt over your lifetime. Financing an unexpected bill, buying a home, or financing the purchase of a new vehicle are all respectable reasons to borrow money.
While it may come as no surprise that great credit works in your favor when applying for a loan, many car buyers are shocked to discover that one of the most common issues with an individual’s credit isn’t due to a poor track record of financial mismanagement, but rather errors made by creditors or credit reporting agencies! In order to ensure you’re getting a fair interest rate on your auto loan, follow these tips for finding and fixing any credit report errors that could be affecting your score.
If you’re one of the millions of people looking to buy a vehicle without unloading a significant amount of cash up front, here are the most common auto loan terms you need to know.