Vehicles have always been a huge part of the society. In fact, they are the ultimate symbol of status. And life without them seems to be unbearable.
However, buying a car is the second biggest investment after buying a house. But what you do before signing that dotted line determines if you’ve made the right decision or not. The wrong one can easily condemn you to a life in debt, especially if you take a car that you can barely afford.
So what exactly should you do?
For starters, get to know your credit score. It will help you choose between taking a loan from financial institutions or looking for funding elsewhere. Anything below 650 will attract high-interest rates. And that translates to pretty bad news for the buyer.
In most cases, people might be tempted to go for the “affordable” monthly payments. But if you do the math, the results will shake you up! You’ll end up paying more money compared to the cash buyers for the same car while the resell value drops like a rock! So, the idea here is to do the calculations beforehand and forget about affordability for a while.
Car financing options range from banks, credit unions, and peer-to-peer lending. And the difference between them is the interest rates. Credit unions and peer lenders are the best when it comes to leniency and cheap loans. But that is not a green light to go placing the house as collateral. Some unlucky People have made this mistake, and the results are pretty devastating.