5 Ways to Prepare for Buying a New Car
Are you thinking about buying a car? Perhaps you know you’ll need to invest in one soon. Before you visit a lot and start talking to the dealership, there are a few things you should do to ensure you are in the best place possible to make an investment. Skip the sales talk from the dealership and start with your needs. Get an idea of what type of car fits your goals. Then, get your finances in order. Here are five ways to do this.
#1: Check Your Credit Report
You have the ability to check your credit report one time every year, without charge, from each of the three credit bureaus. AnnualCreditReport.com is the approved site for doing this. Look through the reports. Be sure it is accurate. Are there accounts on it that you do not have? If you notice any mistakes, be sure to dispute them with the associated agency. A clean report shows lenders you are a reliable buyer.
#2: Find Out What Your Credit Score Is
Choose a method that is free to check your credit score. This score is a mathematical representation of what is on your credit report. It provides insight into what lenders may see when they pull your report to determine if they should lend to you. Work to improve this number before you purchase a car. It can reduce your costs.
#3: Work to Build a Down Payment
Any amount of a down payment reduces how much you have to borrow to buy a car. If you can get together $1,000 or more, this can also help reduce your interest rate. It shows the lender you ready to invest in a vehicle. Though many lenders do not require this, it tends to be beneficial.
#4: Start Shopping Around
Look to your local dealerships with the car. You can also shop online for a vehicle. The most important factor when doing so is to learn about what is available. Take a few test drives. Find the car you know you want to buy.
#5: Turn to Your Banker for a Loan
In many cases, dealership loans are more expensive than those available to you through a local bank. Small banks are even better opportunities. They know you. They are able to make decisions about lending to you on a more personal level.
When you take these steps, you are able to make a wise decision about the car you invest in. It pays off in the long term with a vehicle you can afford, and you enjoy owning.