When I was a child, my mother always told me about how studying with diligence would one day lead to properties and cars and luxurious trips to exotic foreign countries. While it gives one a great idea about how materialism is deeply rooted within the society, it also depicted my mother’s hopes from me.
Right now, I am 22 and am nowhere near to purchase my first car and make my mother’s dream come true. I, however, do know how to acquire one in the USA through loan—and it isn’t that hard. If you are one of those people who dreams of owning a car in the USA, but have financial constraints to oblige to, then this is the article for you to keep reading.
The first and foremost step to acquire a car is to have a Social Security Number. If you have that, then getting a loan becomes easier than sliding down a water slide.
Getting a car loan is so easy and affordable these days that people take them out even when they have enough money to buy one themselves. First things first: the amount of money that you borrow is the loan principal, an amount which should be paid back in a specific amount of time along with an interest rate. A failure to do so will lead to the lender acquiring the possession rights to your beloved car.
There will be terms and conditions regarding the loan. These days, the terms and conditions are such that almost anyone with a minimum wage job can own a car. The interest rates are at its lowest, with the highest being at a mere 5%, making USA a delight for people who have an obsession with owning a car.
Another factor that lenders look into while providing loans is the credit score of the borrower. Credit score is a number assigned by the credit bureau based on several factors like how much debt you have, your ability to pay bills on time, how long you’ve been using credit and your debt to income ratio, which is the amount of debt you have versus how much money you earn.
In layman terms, the higher the credit score, the easier it is to obtain loans. So paying your bills and being a good citizen is an absolute necessity to becoming the owner of a car. A credit score of above 720 gets you the best loan rates. The credit score can be gotten from FICO for a small fee, or from bureaus like Equifax, Experian and TransUnion.
Here’s a tip for you if you are low on your credit score: pay off bills like credit card debts.
The next part is to apply. The important thing here is to apply for a loan from a number of lenders which includes the bank and credit cards union. One doesn’t apply for only one job or one college, the same is the analogy here.
To make sure that you get the best loan offer, you must be able to have a number of them to choose from—which you can only do if you apply for many of them. Also, applying to multiple lenders all the same time is a good move since the credit bureaus, who see the application, will then know that you are serious and mean business.
Another reason to do this is that if you spread your applications out and do them at a dispersed time-frame, it will lower your credit score.
There is a saying that honesty is the best policy and this saying holds a very dear place in this regard. When you are filling the form out, make sure you are very accurate with the details you fill in; like your income and expenses. Each and everything you write will be cross-checked with utmost thoroughness and if you lie, you will be caught.
Make sure you carefully look at the deals before choosing one. Some have a longer repayment time with lesser interest rates, which in the end makes on pay a lot more than she/he would have. Some have a lot of additional fees draped by a facade of small interest rates in order for the borrower to believe that she or he is a winner. Hence, loan interest rates isn’t the only thing one must see.
Also, never buy the car from the dealer until conditional. In other words, always wait for everything to be finalized with the loan before buying a car. As the saying goes, haste is waste, and being hasty here could lead to them changing the ‘conditional’ terms if you ever fall in stingy situations.
Finally, make sure that you are getting the loan from the right dealer. There are many dealers are out there who could be labelled as ‘loan sharks’ that do more harm than good. Google is always a friend when it comes to finding out trusted car loan dealers in the USA, but since I am a nice guy and you have taken the pain to read this far, I won’t further add to your miseries and list some trusted and well-established carl loan lenders companies…
- Auto Credit Express
- Capital Car Loans
And since you have read this far and now know the companies that provide the best loan deals, here is an added bonus for you in the form of organizations that are regarded as the finest car dealers in the USA…
- Longo Toyota
- Herb Chambers Honda
- Helly Automotive Group
- Rick Case Automotive Group
- Power Ford of Albuquerque
- The Ancira Community
- Moss Brothers Auto Group
- Kelly Buick GMC
- Sanderson Ford of Glendale
- Brickwell Motors
So, there you have it. All you needed to know about owning a car through a loan program is here with the best car dealership companies as well. Now all that remains to be done is to act and before you know it, you are driving in your dream.