|
CAR
BUYING IS DESIGNED TO BE CONFUSING
You
may be asking yourself why is car complicated and makes you
feel intimidated. Why can't it be as simple as buying oranges
or bananas. You see what you like. Pay a fair price for the
items you like, and you go on your way. But buying a car is
very different from this standard retail procedure. There
are many reasons for this difference.
THE
RIGHT CAR LOAN FOR YOU
As a borrower, your job is to make yourself appear so solid
on a loan application that you can get the best terms possible,
both in rates and in percentage of the value of the car. Here's
how you should do this:
•
You must look like a good loan candidate. It always helps
to dress up, look solid and financially conservative. Large
part of the initial evaluation is based on your behavior and
dress. Believe it or not.
•
Never mention trouble such as divorce and layoffs. The loan
officer will wonder if you will still be able to pay off the
car loan with all the other demands on your money. Make it
look like as much of your income as possible will be available
to go toward the loan.
•
Make it look as though there are fewer people enjoying a piece
of your income. If you have kids and an ex who get a piece
of your pie, your significant other has kids and an ex who
all get a share of your income, the bank will know for sure
that there are many constraints on your salary.
•
It is not good to even try to get-an-out-of-state-loan because
it would be a nightmare to repossess an out-of-state car.
So, the loan process would be nearly impossible.
•
Do your best to show long, steady work history based on salary
and not commission. Banks object to commissions as a basis
for a loan because they fluctuate with the economy.
•
Show long-term stability in your residence. Banks like to
know where to go if it is necessary to repossess the vehicle.
•
If you feel your loan history is not at its best, it may be
best to get a copy of your credit history from one of the
credit bureaus before the loan interview.
•
A lot of people are embarrassed about their credit history.
They will not risk embarrassment by going to banks. They would
rather go to an auto dealership, pay more and avoid the discomfort
and anxiety, even though most dealerships ultimately finance
through banks. What you don't want to do is worry about your
credit to the point that you do not got to a bank, but go
to a dealership instead and throw yourself at their mercy.
•
Make sure you ask for enough money to be able to get what
you need and want. Don't starve yourself. Borrow enough money
for the vehicle you want.
•
As a rule, always ask for 1% less on your interest rate because
of some made-up reason, and see if it works. It's worth a
try.
|
