A Guide for Auto Financing in Everett
April 23, 2015
There has been a great deal of discussion about the amount of money that you should invest in a down payment on a vehicle, whether it is new or pre-owned. On a new auto, the usual consideration is 20% of the cost of the vehicle. On a used one, at least 10% is recommended. The average is about 12%. Regardless of the down payment amount, there are several factors to think about when deciding upon auto financing in Everett.
- It is to your distinct advantage to know your credit score before visiting a dealership so that you know where you stand financially.
- Check around for interest rates for your particular credit score. This is a bargaining tool to use with the sales professional at a dealer. If your credit is not optimal, you can still acquire a loan, but should have a larger down payment to reduce your overall costs and APR.
- Try to obtain a shorter-term loan. Although your monthly payment will be higher, you will pay less overall for the term of the loan.
- Shop around for insurance to get the best deal.
- Be flexible with the type of vehicle that you want. You may have your heart set on a truck but do not overlook the used SUVs for sale, as there may be a better price point there.
- Just because you have saved a substantial amount of money, you do not have to use all of it for a down payment. It may be better to allocate some to your emergency fund.