BASICS OF FINANCING A USED CAR
The basics of financing your next car, truck, or scooter is determined by many factors. Before you start hitting the pavement and visiting used car lots or trying to purchasing a car from a private party , the following information can be helpful. The prices of both new and used cars makes it almost impossible to pay cash for your next vehicle. However, cash is king and usually if you show the money the price will drop $500. or more as the seller knows you are serious. If you it show me the money. If you so not have cash check out the checklist below:
1. CREDIT SCORE What is your credit score???? If you are among the thousands of laid off American’s and your credit score has tanked you are looking at a used car annual percentage rate APR of from 18%-30% in some states.
The BUY HERE PAY HERE USED CAR LOTS will probably charge you more than this as they know you are desperate and need a car and your credit score is a low credit score or marginal. Lets do say you are about to pay 18% interest on a $3000. vehicle
COST OF CAR $3,000
APR=18% 540. PER YEAR INTERST
tax/insurance/transfer fee 180.
full coverage ins. required 900. per year
2. MONTHLY PAYMENT CALCULATION 24 MONTHLY TERM OF LOAN 4620.00 – 185.00 PER MONTH
3. DISCLAIMER: THIS INFORMATION DOES NOT TAKE IN CONSIDERATION YOUR DRIVING RECORD DOWN PAYMENT INFORMATION TRADE’IN ALLOWANCE AND DRIVING RECORD:
4. TERM OF AUTO LOAN: The longer the term of the auto loan the lower the payment but the more you pay in interest over the long term of the loan. Your driving record and cause your full coverage insurance to be more and the annual number of miles your report to your insurance can rise or lower your yearly insurance premium.