Having a vehicle is key to survival for many Americans. They need cars for running errands, going to work, and for a sense of personal security. These tools are expensive, however, and represent a long-term financial commitment should they ever need repairs or maintenance. The costs and attachment go up even more for those seeking auto loans.
Several steps should be taken before heading to a car dealership or looking at ads. Allow our team at First United Bank & Trust to share some of these steps with you.
Balancing Finances
Reviewing your wealth portfolio can help you decide how much you can afford a car loan. This should include bank accounts, monthly expenses, income, and other assets that might affect your regular budget. Add to this any significant life changes like moving, getting a new job, getting married, or having a baby, and the amount you can afford each month will continue to drop.
Looking at a personal financial plan will help dictate the final dollar amount of the loan you request.
Picking a Lender
One of the biggest things that should happen before shopping for a car is applying for a loan. MSN Money says that it may seem counterintuitive to some buyers to have the money already before finding the car, but this way, you won’t be as tempted to get something you can’t afford.
On top of that, as The Wall Street Journal pointed out, dealers are notorious for scamming shoppers on car value, loan rates, and closing costs, so talking to a financial advisor about car lending options and securing a note before you browse will help keep costs under control.
Second Time Around
Don’t get hung up on the idea you need a new car. Look for something practical and safe, as these qualities will likely pay off in other ways.
Reliable cars are often the least flashy. They require less maintenance, haven’t been driven as hard, and have reduced insurance rates compared to other vehicles. Extra airbags and a lowered chance that the car will be involved in unsafe driving scenarios make insurers and lenders more confident in giving you a deal.
Start Saving For Your Car With First United Bank & Trust
First United Bank & Trust is your go-to banking choice for loans and credit options in preparation for your new car. Contact us and find your nearest branch online to set up your account today!