How Do You Know a Car Loan is Right for You?
One single tear rolls down your cheek as you watch the tow truck haul away your first ride or die chick, good ol’ Bessie, AKA your parent’s 1970 Dodge Charger R/T that just broke down on you in the middle of the road.
Now, the moment you’ve been waiting for…
CAR SHOPPING TIME!
But wait! You’ve never done this before!
How do you even know if this is right for you?
Well don’t you worry your pretty little head because I gotchu fam J
DON’T BUDGE THAT BUDGET
Knowing your budget sets the foundation for what kind of car you can afford. This includes paying for insurance as well. Your driving record, age, and the type of coverage you’re getting are all factors. (Not so) Fun Fact: Teen males are significantly more expensive to insure – yippee for being a girl!
CHECK YO CREDIT SCORE
Your credit score could be a huge reason you are either approved or denied a loan. Definitely check yours beforehand and work towards building a better score! A friend of mine recently confessed that if there’s one thing he learned when he was younger, is that it’s better to have good credit than to be rich with bad credit.
I CAN GO THE DISTANCE
The length of your loan will be affected by how much you drive. If you’re a Hercules at heart, and you “can go the distance”, then you probably don’t want to commit to the seven year loan. Your car will be dead (like YOLO) before you even pay that off. On the other hand, if you rarely drive, you should take out a longer loan because your car will be worth more at the end.
I’M IN LOVE WITH THE CO CO-SIGNER
It’s common for us young folk, with little to no credit history, to have a family member with a well-established (oh you fancy huh) credit score to be a co-signer. It helps get your foot in the door to the real world, and hopefully get more favorable terms on the loan you’re applying for.
The car you want should fit in with your lifestyle! Don’t be distracted by the look or fancy gadgets a car has. Just like human beings, it’s not what’s on the outside that counts :) Make sure you can take care of the car and actually make your payments. Remember, this obligation will have serious effects on your credit score.
SO NO PRESSURE ;)
Now what are you waiting for? Buckle up and hit the road Jack!