Financing Your Ride: Making Smart Choices with Auto Loans

Auto loans can be a great way to finance your new car purchase. But with so many options, knowing which one is right for you can take a lot of work.

Here are some tips to help you make the best choice for your needs.

Know what you can afford - create a budget and stick to it.

Creating a budget can be intimidating, but it doesn’t have to be. It’s all about taking the time to do some research and analyzing your spending habits. 

Start by writing down your average expenses, from rent and groceries to cable and internet bills. Once you’ve identified how much you need to set aside for the necessities, figure out what you have left for optional expenses like entertainment and dining out. 

This will give you a starting point and allow you to track how much money is coming in and going out each month. Having a budget and understanding your finances is essential in knowing what you can afford, not just now, but in the future too!

Research your options - compare interest rates, terms, and conditions.

Doing your research before choosing a loan is key to finding the best option to suit your needs. Different lenders, like the Credit Union of Denver, have different interest rates, terms, and conditions, so it’s important to compare these criteria. 

Little differences can significantly change the monthly payments you end up having. That said, there’s no one-size-fits-all solution – take the time to explore what options are out there for you specifically and pick the best one for your financial situation. 

Doing comprehensive research pays off in the long run!

Don't be afraid to negotiate - get the best deal possible.

Negotiating for the best deal possible is an essential skill that can help you in various situations - from buying a car to haggling over the price of groceries at your local supermarket! 

You don't have to be an expert negotiator to ask tough questions and get a great deal. Start by researching what makes a good deal; when you're ready to negotiate, be confident in letting vendors know exactly what you're looking for. 

Being prepared and aware of your options will give you the confidence to ask for the best deal possible! If you don't feel uncomfortable negotiating on your own, bring along someone else for moral support and extra knowledge. 

Whether buying a house or getting discounts on everyday items, don't let fear of negotiation hold you back from getting the best deal possible - get it!

Read the fine print - understand all the terms and conditions before signing anything.

Understanding all the terms and conditions before signing something is one of the most critical steps in making any significant decision. 

Making sure you've read the fine print ensures you know what you're getting - and not getting - when agreeing. Take some time to properly review an agreement, so there are no surprises later on. 

Don't be afraid to ask questions or seek professional help if anything is unclear. By being aware and prepared, you can make informed decisions that work best for your situation!

Keep your loan term short - the longer the term, the more interest you'll pay in the end.

When you're getting a loan, keeping your term short is essential. Your interest rate plays a significant role in the amount of money you will pay back in total, and with a longer loan term, you increase the period during which you'll accumulate interest. 

The more months or years you have the loan, the more involved—and expensive—your payments will become. Remember that the tenure of your loan will always impact how much access additional financing options later on. 

Keep your loan term as short as possible for maximum savings!

Make extra payments when you can - this will help reduce the overall interest paid on the loan.

Have you ever taken out a loan for a car, home, or tuition? Making extra payments on your loan's principal whenever you can is a great way to reduce the overall cost of borrowing. 

Paying more than the minimum monthly payments will shorten your repayment term and decrease the interest you'll need to pay over time. Every extra dollar spent goes towards reducing the remaining balance of your loan, effectively shrinking the interest payment percentage. 

In some cases, even small additional payments can add up over time and make a big difference in the total amount paid! Keep track of your loan balance status and make monthly contributions if possible.

This blog post has helped you get more informed about securing a loan. To recap, make sure to know what you can afford and create a budget you can adhere to. 

Compare interest rates and terms of available loans. Feel free to negotiate for better terms. Read the fine print for each loan thoroughly, and keep your loan term short if possible to avoid accumulating excessive interest payments over time. 

Whenever possible, make extra payments on the loan. There are a lot of factors to consider when it comes to taking out a loan, so be sure to do your research and have a solid understanding of all the risks associated with it. 

Ultimately, being mindful of whether you can handle additional debt will help ensure that your decision is right.

4 Ways to Finance Your New Vehicle

You might be interested in purchasing a vehicle, and you might not have the money to pay for the car in cash. If this is the case, you shouldn't worry, since there are various financing options that might work for paying for your car purchase.

If you're wondering about the different ways that you can finance your vehicle, you may want to consider the following options.

Apply for a Loan through Your Bank

First of all, if there is a bank that you already regularly work with for your financial needs, you might want to check into your options with them first. Your bank might offer car loans. 

If you are able to secure one of these car loans, you might find it's easier for you to get approved than if you were to go through a different bank that you don't already have an established financial relationship with. 

Plus, you might feel better about taking out a car loan from a financial institution that you already trust.

Get a Loan from a Finance Company

Not only can you potentially get a car loan from a big bank, but you can also check into finance companies. There are various finance companies that grant car loans, and some of them are even willing to work with people who have less than perfect credit, so this could be a good option for you.

Opt for Dealer Financing

Some car dealerships actually offer their own financing. Basically, this means that you make payments directly to the dealership each month instead of to a bank. Check into dealerships like On-Trac Auto Sales to find out if dealer financing might be a good option for you.

Pay with a Credit Card

When you think about swiping your credit card, you might think about using it to pay for things like new clothes or electronics or to pay your day-to-day expenses. 

However, believe it or not, many dealerships do accept credit cards. This means that you might actually have the option to pay for your car purchase with a credit card. 

This can be a good option if you have a credit card that has a high enough limit to cover the purchase. However, you should make sure that you are mindful of things like interest rates and minimum payments on your credit card after making this big of a purchase.

As you can see, there are a few different ways that you can finance your vehicle. You might find that one of these options will work well for you and will allow you to purchase the car that you want, even if you don't have cash on hand to pay for your purchase outright.

Got a New Car? The First Steps Needed to Take Right After

It is always exciting to buy a new car, especially if this is your first car. You do need to take a few important steps before hitting the road in your vehicle. In fact, the following steps should be taken right after purchasing your new car.

Transfer The Title

You need to ensure the dealership signs the title over to you. This way, you have legal documents stating you are the new owner of the car. If you are financing the car, the dealership may have to send the title to your state agency.

Register The Car

Your car cannot legally be driven until it is registered. Depending on how you purchased the car, you can register it with the dealership or the Department of Motor Vehicles. Place your registration in your glove compartment for easy access.

Maintain Your Car

It is important to have the car inspected for any issues, especially if it is a used car. You can talk to your dealership about having a mechanic inspect your vehicle. Owning a car also means taking care of routine maintenance, such as oil changes.

Make Necessary Repairs

The last thing you want is a car that is not safe or possible to drive. This is why you must make the necessary repairs as soon as possible. Remember that mechanical repairs are more important than cosmetic repairs because this could be a safety hazard.

Obtain Auto Insurance

It is illegal to drive your car without auto insurance. If you get into an accident, you also need to take care of the out-of-pocket costs for repairs. It is important to insure your car before driving it, which you can do with local companies such as Mike Pierce Insurance.

Read The Manual

Reading the owner's manual is important for learning how your car works. While you may not want to sit down and read every page of the owner's manual, you need to at least scan the manual for important information.

Learn The Features

In addition to reading the manual, you also want to take a hands-on approach to learn the features of your car. You need to know how to activate features such as your turn signal, windshield wipers, and headlights. It is also important to learn how the dashboard warning lights work.

After you take the above steps and ensure your car is safe and ready, you can hit the road and show off your new vehicle. These beginning steps will help driving be both safe and enjoyable for all.

4 Financial Facets of Owning a Car You Must Attend To

Owning a car is a huge financial responsibility. When you are buying a car, there are many things to think about. Not only do you have to decide on the make and model of the car, but you also have to think about the financial aspects of owning it.

There are many things you need to attend to keep your car running properly and protect your investment.

Car Insurance

The first thing you need to do is find a good car insurance company. You want to find a company with a good reputation that offers coverage that is right for you. 

There are many different types of coverage, so make sure you understand what each one covers before you choose.

You will also need an insurance company that offers good insurance rates. The last thing you want is to overpay for your coverage.

Financing Options

The next thing you need to think about is how you will finance your car. If you are going to buy it outright, you will need to have the cash available. If you are going to finance it, you need to find a good interest rate and make sure you can afford the monthly payments.

It is important to compare rates from your bank to other lenders before you make a decision. You want to make sure you are getting the best interest rate possible.

Your Credit Score

Your credit score is another important factor when you are financing a car. The better your credit score, the lower your interest rate will be. If you have a good credit score, you may even get 100% financing.

If you have bad credit, you may still be able to get a loan, but it will likely have a higher interest rate, negatively impacting your future finances. You can improve your credit score by paying your bills on time and keeping your balances low.

Your Income

Your income is the most significant factor you need to consider when financing a car. You need to make sure you can afford the monthly payments. If your income is low, you may want to look into a used car or a car with a lower interest rate.

You also need to think about how much money you will be spending on gas. If you have a long commute, you will want to choose a car that gets good gas mileage.

Furthermore, be keen to set aside a budget for routine maintenance and repairs.

Lastly, owning a car is a big financial responsibility, but if you take the time to attend to all facets, it can be very rewarding. Make sure you do your research and make smart decisions about buying and financing your car.

Missed Black Friday? 4 Best Sales Times to Buy a New Car

Shopping for a car? While many wait until Black Friday to go hunting for the best deals at the dealership, this isn’t the only option. If you plan to buy a new car in the future, keep the following information in mind.

Take Advantage of Holiday Sales

Shoppers that miss Black Friday aren't quite out of luck when it comes to getting the best deals on their vehicles. Many dealerships offer competitive pricing during other holidays throughout the year. After Black Friday, the next holiday to prepare for is New Year’s Eve. This holiday is often overlooked and is one of the best times of the year to buy a car.

On New Year’s Eve, many car salespeople have to meet their monthly, quarterly, and yearly quotas. Oftentimes, they’ll jump at a deal for anyone that is in the market to buy a car.

Wait Until the New Models Arrive

When shopping for a car, try waiting until the new models arrive at the dealership. When dealerships receive their newer models, they’ll be forced to sell off the older stock as soon as possible. By holding out, the buyer will be able to find new or used models at the best discounts.



If you’re waiting for new models to arrive, be sure to do your research. Most manufacturers release these models during the summer, so be prepared to start shopping then. As many shoppers use this buying strategy, waiting until after summer may be too late.

Buy Later in the Year

Just as New Year’s Eve is one of the best times to purchase a newer car, waiting until the last few months of the year is a feasible strategy as well. October, November, and December are all excellent times to buy a new car. If you can’t wait until the very last day of the year to buy new ford cars for sale, you’re still likely to find a salesperson willing to cut a better deal later during these months.

Visit the Dealership in May

Many buyers choose to begin shopping for cars once the weather begins to clear up, making May a popular time to go car shopping. Buyers that can wait until the end of May can cash in on Memorial Day car deals. Moreover, many manufacturers provide lease incentives and special finance deals at this time, making late May ideal for car shopping.

Don’t overspend when buying a car. By strategically waiting until the right time of year to purchase your new car, you’ll be able to get the best deals on your new vehicle.

How to Save Money on Your Next Car

Car dealership (Photo credit: Wikipedia)

If you are in the market for a new car, you may think that there are simply no ways for you to save money on your purchase. However, this cannot be further from the truth! There are countless ways for you to save money on your next car, and we are going to examine a few of the top methods here.

Conduct Some Research First

The fact of the matter is, not all car dealerships are equal. Some of them have higher prices than others, and some offer better deals. With that said, it definitely pays to shop around and conduct a bit of research before you step foot on a dealer's lot.

There are many websites where you can discover the average selling prices for various cars. In this way, you will know whether or not a dealership has overpriced its vehicles. Additionally, by accessing the Internet, you can shop around for the cheapest and best vehicle of your choice. 

Obtain Your Own Financing

Before you begin shopping for a car, you need to determine just exactly how much money you can afford to spend on one. In short, what size of a payment can you fit into your monthly budget? Contact your bank or local credit union and apply for a pre-purchase loan. If you qualify, you will be better prepared to determine what you can afford.

Try to save up as much money as you can for a down payment. This will help significantly in lowering your monthly payments or the term of your loan. Once you have been pre-approved for a loan, you will have about two months to find a car you wish to purchase.

Use the Power of Negotiation

After you have obtained financing and determined what you can fit into your budget, you will then be prepared to visit a few dealerships. Keep in mind, though, you should always stick to what you want to spend. In other words, never let a dealer take advantage of you. Additionally, make sure that the price you are offered includes everything.

By “everything,” we mean the price of the car, taxes, the cost of the title, tags and any other applicable fees. All of these expenses added together equal what is known as the "out of door" price for the car. Furthermore, never conduct negotiations over the phone or Internet--always negotiate in person. 

Get the Most for Your Trade-In

If you want to use your old car as a trade-in for the down payment, be sure to find out its Kelley Blue Book value before visiting any dealerships. Furthermore, do not mention your trade-in to the dealer until after you have negotiated the price of the new car. In this way, you will get a much better deal for both the old and new cars.

Never Give in to Pressure

The best tip when shopping for your next car is to never give in to pressure. A dealership is going to try to pressure you into buying one of its cars right then and there. The salesperson does not want you to think about your purchase because you very well may change your mind. However, remember that it is your money, and you have every right to walk away.

There are other dealerships that may offer you a better deal. If you do not like a price or need time to think about a deal, ask the salesperson for their business card and tell them you will call after you have thought over your decision. When you use these valuable tips, you just may be able to save hundreds or even thousands of dollars on your next car.


Bill Akintoye works at Shabana Motors in Houston, TX. They buy used cars and provide appraisals in fewer than thirty minutes.