So You Want To Finance A Car?
Looking to buy a new car but need financing to make it happen? If so, you're not alone. 50% of recent car buyers require financing to afford their dream vehicle, but the process of securing financing can be overwhelming and stressful. In this article, we'll take a closer look at the current auto financing experience and what you should keep in mind while shopping to get the best deal.
Buy Now Pay Later, But What About Overall Affordability?
First and foremost, it's important to understand that the car buying process has changed significantly over the years. With the rise of online shopping, consumers now have more options than ever before. However, this increased accessibility also means that there are more potential pitfalls to avoid and more due diligence that is necessary. When it comes to financing, it's essential to do your research and shop around for the best rates and terms that fit your budget.
One common challenge for car buyers is determining how much they can afford. Before you even start looking for a car, you need to know your budget. Take a look at your income, expenses, and credit score to determine how much you can realistically afford to spend on a car. Break it down and make sure that after all of your expenses, including a comfortable vehicle payment, you have some left over. Additionally, factor in other costs such as insurance, maintenance, and gas. If you’re not sure how to calculate your affordability, there are loads of online resources to help with that. Carbeeza, for instance, will filter vehicles by what fits into your budget based on a few non-identifying questions you can answer at the start of the search! Bonus!
Alright, Let's Find A Car!
Once you've determined your budget, it's time to start shopping. There are many online resources available to help you find the right car for your needs and budget. However, be sure to do your due diligence and research the seller and the platform before finalizing your purchase or providing any personal info. There are many sites that claim to provide up-front financing on a vehicle but require you to provide personal information that is then provided to the dealership without your knowledge. If you’re not a fan of telling random sites online what your Social Security Number is, you’re not alone! Online privacy is becoming increasingly important, and thankfully, technology exists to provide a similar level of insight into your financing budget without even needing your name. Yep, you guessed it, Carbeeza can do that!
Once you have found a vehicle that fits your budget, it's time to look at the financing options themselves. Many car dealerships offer financing through banks and other lenders. However, be aware that these loans often come with higher interest rates and fees. Alternatively, you can secure financing through a third party like a bank or credit union before you even start shopping for a car. This can help you negotiate a better deal and avoid any surprises at the dealership. However, financing through a third party can be less flexible, and you may be limited to shopping based on the max loan amount, which may not fit into your true affordability.
Overall, the car buying experience can be a stressful and overwhelming process, especially if you need financing. However, with the right research and preparation, you can find the right car and financing option for your needs and budget. Remember to take your time, do your due diligence, and don't be afraid to ask for help if you need it. Carbeeza is here to help, give it a try today and…
