Applying for a car loan? We’ll sooner or later we all will. So I wrote this short guide as a basic must-know guide to arm ourselves when the time for a car loan comes.
1) Shop Online – Shopping for car loan online is a great time saver. By comparing from different sites you can get the best deals. Applying also is easy and even some sites will give you information you need within minutes.
2) Know Thyself! – You must know the basic criteria for applying for a car loan. The basic criteria includes that you must be above 18 years of age. Best if you earn at least R8000 a month. Also needed are residence and employment history, and have a good credit record. If you don’t know your credit status, it’s best to confirm it with the credit bureau before applying for finance.
3) Get Approved First – Don’t make the mistake of looking for a car before being approved. Get approved first then they will give you a voucher for how much you are allowable to loan. Doing this will save you future frustration and disappointments.
4) Down Payments – This varies from lender to lender, and some don’t even require. But typically it’s about 10% of the price.
5) Interest Rate – The interest rate is not fixed as most people think, and yes it can be negotiated. If you have a good credit score and good negotiating skills you can have a lower interest rate. But some factors are way out of your control such as the state of the economy.
There you have it. Well that’s not all, there’s a lot of other things you need to know. But what I’ve enumerated are the vital essentials before applying for that car loan. One thing also is to ask advice from an authorized dealer or loan official. They’re there to help you. If there’s something you don’t understand, ask them now or you’ll face lots of headaches later.