An orderly, organized approach helps get the auto financing you are looking for

Here are 9 steps to help you get the car credit you need to get your next car

If you believe what you read in the auto advertisements in daily papers, you will think that most auto dealers have plenty of money to lend to everyone at very low interest rates. It doesn’t take visiting many dealerships before you learn that this just isn’t so. The fact is that securing car credit in today’s market takes both perseverance and doing your homework. As has long been the case, those with excellent or very good credit don’t have to do very much to secure both a good rate and terms. However, there aren’t a lot of those people around. Everyone else has to work pretty hard. So let’s take a look at how one can best go about getting the auto financing they are looking for to buy their next car.

1. It all starts with getting your credit score and knowing that based on it what you can generally expect. The poorer your credit, the harder the job is going to be. But fortunately, when it comes to buying a car, almost any credit can be successful. It’s mostly a matter of knowing what you need to do.
2. Try and arrange your financing before you start shopping for cars. It’s easier to make the right decisions financially when you aren’t emotionally wrapped up in a particular color and model of a car. It’s also easier when you aren’t under pressure.
3. Finance a car you can afford to pay for. I know this sounds basic but it’s easy to buy “too much” car. While you will enjoy it’s “newness” for a while, monthly payments which put your back against the wall gets very old quickly. Be sure the amount you agree to is an amount you can pay and still have money left over to enjoy and buy the other things that are important to your everyday life.
4. Keep your financing term, the length of time of your loan, as short as possible. This does 2 things………… it gets your loan paid off sooner and if you trade your car before your loan is paid off, it helps prevent you from owing more on your balance than the car is currently worth.
5. If you are financing with a dealer, see what cars he wants to move and has incentives on. In most instances there are models, colors and option packages that a dealer wants badly to sell, if they will work for you, they can be a very good deal.
6. Very importantly, try and put some money down on your next car purchase. Even if it’s only a few hundred dollars this can make a big difference in the financing you are offered.
7. One thing NOT to do is to use your other assets like a savings account to “secure” your car purchase. If you can’t purchase a car based on your credit and the value of the car, then pass on that particular car and look at something else.
8. Also a cosigner can be an asset and helpful in getting a good rate but remember they need to have better credit, often much better credit, than you do. This can often be very hard to find. Again, if a cosigner is needed and you don’t have one, just keep looking there are a lot of cars out there.
9. Finally, a great place to start your search is on the internet. There are many reputable lender and dealer networks on the web and many of them are experienced in working with less than good credit. It’s a convenient, private way to check out multiple sources right from your own home.

By following these steps and carefully working through them one at the time, you will be pleasantly surprised with the outcome. You’ll find you can probably get financing easier than you thought and at a better rate. It’s a matter of patience and perseverance and approaching getting credit in an orderly way.