Car Buying 101: Getting an Auto Loan

CAR BUYING 101: Getting an Guto Loan TIPS FOR GETTING A GOOD INTEREST RATE PLAN AHEAD The best credit scores get the best interest rates Know your credit score to get an idea of expected interest rates Look for cars within your budget so you can afford payments LOOK AROUND Interest rates change every day Different lenders in different regions will have different rates Use an online calculator to compare current annual percentage rates REMEMBER THE WHOLE PICTURE A low annual percentage rate isn't the only number to weigh Consider trade-in value, down payment, and length of loan Figure out the total interest you'd pay for the life of the loan FINANCE BEFORE YOU BUY Having financing in place helps you get the best price on the car Avoid loans that are longer than 72 months Aim for short-term loans with an interest rate you can afford WHAT AUTO LENDERS LOOK FOR YOUR CREDIT SCORE SUB-PRIME AVERAGE EXCELLENT 679 and 680-739 740-850 below 6.5-12.9% average 4.5% average 3.2% average interest rate interest rate interest rate YOUR EMPLOYMENT SITUATION The longer you've been at one job, the better At least 2 years of continuous employment is ideal Lenders look at your income and job history YOUR DEBT-TO-INCOME RATIO A maximum ratio of 45% or less is ideal How much of your monthly income goes to paying off your debt? If you have good credit, lenders might accept as much as 60% PROVIDED BY Livermore Toyota wwW.LIVERMORETOYOTADEALER.COM SOURCES: http://www.bankrate.com/finance/auto/how-to-obtain-the-cheapest-car-loans.aspx http://www.carsdirect.com/auto-loans/what-credit-score-do-you-need-for-an-auto-loan http://www.realcartips.com/carloans/385-what-lenders-look-for:shtml DODDU DDODU DL