Americans love cars. It is one of the reasons why America is amongst the world’s top car-owning countries. Every year, Americans spend several thousand dollars on auto loan payments. If you are looking forward to buying a car, make sure that you follow S.M.A.R.T. tips. The tips will help you save money and ensure that you do not opt for exorbitant auto loans.Follow the S.M.A.R.T. Tips and Save MoneyWhen car buyers have to make a decision about auto loans, logic takes a backseat and emotions become a controlling factor. It is the reason why car buyers say yes to financially harmful auto loans. To save yourself from the possibility of a financial damage, you must follow the tips.S – SpecificThe car is a huge asset. So, it is essential that you understand your requirements before buying a car. It is important that you have a specific image of the type of the car that you want. It will help you stay away from an impulse purchase. Consider the list of following factors because it will help you in choosing your perfect car:1. Total number of passengers2. Gearbox – Automatic or manual gearbox?3. Cargo capacity4. Vehicle performance5. Driving conditions6. Gas mileage7. Safety features8. Technological features9. Parking spaceM – MoneyRemember that even if you opt for an auto loan, you will need to make a down payment of at least 10 percent of the total price of the car. Down payment is beneficial because it helps in reducing the loan amount. If you do not have money for down payment, do not worry. You can trade-in your old car and ask the dealer to deduct its value from the price of the new car.A – Affordable Selecting a specific car will be of no use to you if you cannot afford to buy it. Remember that car expenses are not limited to down payment. You will have to pay money for monthly loan payments, fuel charges as well as maintenance expenses. A general rule is to allocate no more than 20 percent of your total monthly income for car-related expenses. Keep this rule in mind and choose an auto loan that does not exceed your budget.R – Reliable There was a time when car buyers applied for an auto loan with the local bank only. Today, there are several ways of obtaining an auto loan. You can apply with a bank, a credit union, or an online auto financing company.No matter what option you choose, you must ensure that the lender is a reliable one. If you opt for an online auto financing company, check the website’s security certificate. If the website doesn’t have one, stay away from it and save yourself from a potential identity theft.T – Time Car buyers are afraid of rate shopping because they believe that multiple credit inquiries will damage their credit score. But, do not refrain from rate shopping instead, finish it within 30 days. Why?A time-bound search for an auto loan will ensure that you do not harm your credit score. FICO does not consider inquiries made in the 30 days prior to scoring. So, if you are able to get a loan within 30 days, it won’t affect your score. This span of time can change to 14 days if the lender uses older versions of FICO and can increase to 45 days if the lender uses the newest formula.Car buying is one of the most expensive purchases that Americans make. If you do not pay attention to your auto loan, you can make the worst financial mistake of your life. So, avoid making a bad decision and follow the S.M.A.R.T. tips.
If your credit score is not up to par, you could still qualify for guaranteed auto loans for bad credit. The recession, not too far in the past now, caused massive losses in employment and personal savings. This means many more individuals were spun into the bad credit category than normal would have been. Lenders and Dealerships are beginning to understand this predicament that is now affecting a majority of Americans, which is why they are offering guaranteed car loans. Bad credit car loans, guaranteed approval, normally have increased interest rates over traditional car loans for borrowers that maintain a good or even average credit score. However, the payment period and terms can be adjusted to make monthly payments more affordable.Remember; this process should not just be about getting into easy auto loans; it should also be about getting a vehicle that you can keep financially, comfortably for the long haul. You don’t want to be car rich and cash poor. Or even worse, you don’t want to go through the process of getting an auto loan only to have the car repossessed because you get behind on payments that are so high that you wind up not being able to afford them. If you’re applying for guaranteed auto loans for bad credit that’s what you want to keep in mind – you’re taking this loan in part to rebuild your credit. So buy a car you can afford without struggle.Therefore, you will want to decide in advance of shopping for a car the vehicle you want that fits in your price range. Look on the Internet or check your local newspapers to get an idea of the vehicles that fit your range. Most people would tell you your next step should be to go to a dealership and apply for an auto loan. That would be a big mistake. A dealership will only tell you about the loans that are available that will benefit the dealership most, not you. After all, the dealership is in business to make money. You can’t blame them for that! However, what you can do to make certain that you absolutely are getting the best deal, is to apply for a bad credit car loans quote online first, using a service such as the one that this web site offers, that will allow lenders and dealerships compete for your business, so you will know for certain that you are getting the absolute best deal. Using this service, you will be approved for credit before you ever visit the dealership.Next, locate a nearby dealership that has the car or other vehicle that you want to buy. It doesn’t matter if they have access to bad credit auto loans or not because you are already approved through your online bad credit car loans application. However, if the dealership does offer such loans, you can look at the dealer rates versus online rates for guaranteed car loans and decide which best suits you without any pressure.You should consider before you go car shopping to get your credit report and your credit score. This is a good task to do annually to make sure your credit report is accurate. Try to save as much as you can for a down payment on the car. This shows the right step towards financial stability to lenders for bad credit auto loans and will get you a lower monthly payment.