5 Ways to Avoid Expensive Car Loans in Flamborough

5 Ways to Avoid Expensive Car Loans in Flamborough

Posted on August 30, 2021

Car loans are a monthly expense we all have to make our peace with, but anything you can do to reduce the financial burden has to be a good thing. That’s what today’s blog post is all about. We asked our Flamborough auto loans team to outline 5 actionable ways you can avoid expensive car loans. This is what they came up with.

Know your current situation

Before you do anything, you need to know where you are. As lending decisions are based on your credit report, among other things, it’s time to take a look at that report to see where you are.

You’re entitled to one free credit report per year per bureau so contact TransUnion or Equifax and request one.

Check your credit score, check your payment history and check everything that’s on the report. Correct any mistakes and make sure all entries are 100% correct.

Save for a down payment

Down payments play a couple of roles. One, they reduce the amount of money you need to borrow, which reduces the overall loan. Two, they reassure lenders are you’re putting your own money at stack too, which can reduce the rate you pay.

Saving for a down payment is a critical element of preparing for a Flamborough car loan and something we recommend every borrower does.

Set a budget

A very common way to end up with an expensive car loan is to overspend. Everyone is tempted by the next model up or a more expensive car. The trick is to already have a budget firmly in your mind before you hit the dealership.

Work out how much you can afford, how much you can put down and then use a car loan calculator to assess just how much you can afford. Have that amount firmly in mind whenever you go car shopping and it should help you avoid expensive car loans.

Set a time limit on the loan

One way to get around that budget is to extend the term. If you say to yourself, ‘I can only afford $350 per month’ that leaves it open to extend the term. A car loan at $350 per month for 60 months is a very different prospect than a car loan at the same amount for 84 months!

Budgeting is not all about the money. It’s about looking at the loan as a whole and assessing just how much you can afford overall as well as each month.

Work with car loan experts

While you can find a lot on the internet, there are times when working with experts works best. We think anything financial, including car loans, is one of those times.

Work with one of our team and we’ll find you a great deal on a car loan at a price, term and rate that suits you.

We can even help you prepare the paperwork and complete the application. How’s that for service?

Contact Unique Chrysler for help, advice and competitive Flamborough car finance and leasing.

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