Car Loans in Snohomish made easy
April 7, 2014
Next to mortgages and student loans, car loans are the most common debt for most people. It is important to obtain pre-approval for a car loan before you go out to select the car. First, decide what appeals to you in a vehicle, from safety features to gas mileage and repair costs to determine the price range you should be applying for. Once you have pre-approval for your loan, you will not be as easily swayed when bargaining because you have a firm figure in mind. This is more cost-effective than selecting a car on the showroom floor that you cannot afford resulting in frustration and disappointment.
Although auto loans run between 12 and 60 months, financial advisors suggest not going over 36 months or three years for many reasons. First, you will obviously pay more interest the longer the term of the loan. For example, a car that sells for $16,995, with a down payment of $1,700 and a 36-month loan, will have monthly payments of $486. This means that when you are finished paying the loan, the car will have cost a total of $19,196 when you include interest, some $2,000 above the cost of the car.
There is another reason not to prolong your loan. If something happens to the car, your insurance settlement is based on actual cash value instead of market value. The older the car, the smaller the cash value settlement you can expect from your insurance company. A good rule of thumb for first-time automobile buyers is that if you can’t afford the payments on a 36-month loan, choose a less expensive car. And keep in mind that although dealers offer special financing programs, such offers may have hidden finance charges.
If you are looking for Car Loans in Snohomish, contact Fresh Start Approval at 888-348-3290. We can help find the best car loan that works for your budget and credit situation. We offer guaranteed approvals and can help restore credit of all types through the repayment of an auto loan that you can afford.