Some Auto Finance Facts

Here are a few auto finance facts on the glance that many would not know yet.

  1. More down payment and shorter tenure of the loan means you end up paying less eventually even if you are paying a lot at the beginning.
  2. Auto finance options offered at car dealerships usually end up being much more expensive than that of banks and credit unions eventually even if it may not seem so, in spite of the various offers and freebies.
  3. Cars depreciate quickly and hence it is important to set a budget for the car that is comfortable for you and take a loan accordingly and make sure that you do not set a tenure that is relatively high, considering the quick depreciation.
  4. The deals on auto finance can vary greatly from source to source, hence it is important to shop around for the best deal possible, compare them and settle for the one which is the best in the long term.
  5. Better credit score will obviously lead to better interest rates. However, you can still get a better interest rate regardless of your poor credit score if you co-sign with someone who does have a very good credit score.
  6. Cashing on the home equity loan will be a good option as it also allows for tax benefits, however do remember that you are associating the loan amount to your house.
  7. The newer the car, the better deal you get as far as your auto finance is concerned.

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