How to Get a Car Loan (The Right Way)

How to Get a Car Loan (The Right Way) :-So if you want to get a car loan without getting totally screwed then watch this video because I’m gonna teach you exactly how to get a car loan the right way financing a car is a big deal because if you don’t do it the right way you’re gonna lose a ton of money and you’re probably gonna end up going upside down in your car now I bought my first car when. I was 20 years old and I was so stupid because I got a $20,000 loan for seven years at seventeen percent interest. So please don’t do what I did because I didn’t do any research and I took a really bad advice for my friends on how to grow my credit and we all know that bad advice will always lead to really stupid decisions now.

How to Get a Car Loan (The Right Way):-

The honest finance Channel and I make a lot of on different financial topics so if you are interested in this type of content feel free to subscribe to the channel or at least give this video a like and now on to the content that you’ve been waiting, for now, I’ll start by saying that financing a car is basically broken into.

Three different parts but you’ve got to understand how these different parts work in order to not get screwed as the consumer we’ll be looking at the amount borrowed the interest rate and the length of the loan those are the three different parts that you need to understand these three different numbers will determine what you can or can’t afford as a monthly car payment so pay attention and just remember that a monthly payment doesn’t determine what you can actually afford until you.

Apply what I’m talking about now starting with the amount borrowed this will be your entire car purchase plus any taxes and fees and any money that’s left from a previous car loan it’s basically everything you need to borrow from the bank in order to purchase your car now make sure to do the research on the car that you’re buying so that you can get the best deal possible and please don’t pay full price for extended warranties or carpet cleaning anything like that because those prices are all negotiable just remember to get the best price possible on your car purchase and feel free and watching my car buying negotiation.

If you need help in this area now as far as the interest rate goes this is just the amount of money that you have to pay back the bank in order to even have your car loan now in order to get the best interest rates you’ve got to have excellent credit or you’ve got to have a cosigner that has excellent credit in order to make it happen and if you are using a cosigner make damn sure that you can make your monthly payments every single month because if you’re late just once you’re gonna hurt their credit score and trust me they’re gonna be pretty pissed when they go in to get a loan and they realize that you screwed their credit score the bottom line here though is that if you do have bad credit just stick with the cheap car.

So that you can actually make the payments and build your credit along the way or you could pay cash and save up like we used to back in the day you’ll also want to have a down payment of about 10 to 20 percent to get the best rates and new cars will typically need about 20 percent down because of their fast depreciation. I know that 20% down is a lot but you’ve got to understand that in order to get the best rates you got to make a few sacrifices. if you have an existing car that you can sell just take those profits and use those towards your down payment and you’ll probably have enough now if you don’t have very much down you can at least see what the banks will give you because it’s worth a try the best car loan interest rates are typically about 3 to 5 percent which will cost you about 30 to 50 bucks a year per thousand dollars that you borrow so if you’re financing $20,000 then you’re gonna be looking at about 600 to $1,000 a year.

In interest but that’s on optimal credit and with a good downpayment and if you are given a rate that’s higher than 5% then. If you have an existing car that you can sell just take those profits and use those towards your down payment and you’ll probably have enough now if you don’t have very much down you can at least see what the banks will give you because it’s worth a try the best car loan interest rates are typically about 3 to 5 percent which will cost you about 30 to 50 bucks a year per thousand dollars that you borrow so if you’re financing $20,000 then you’re gonna be looking at about 600 to $1,000 a year in interest but that’s on optimal credit and with a good downpayment and if you are given a rate that’s higher than 5% then.


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