Questions to ask yourself when deciding if a car loan is right for you
It’s time to start, Clueless reference with wavy hand motion, *rolling with the homies*. C’mon we’re 90s babies… I hope you got that. In this great state of Michigan we need more than just two legs to get around—that’s why most of us purchase our own vehicles. Now while everyone has to have a car right if you’re like me you may or may not have an extra $15,000 to spend. That’s why there are banks like Michigan First and other higher powers in place to get you one step closer to the open road.
Before you purchase, you need some COINS, but not all cash is good cash. Here are some questions to ask yourself so you know if an auto loan is right for you.
1. Does it fit your budget?
Alright Young and Free friends, remember a budget is a number you are financially comfortable and ABLE to meet. There’s no point on setting a ridiculously high number and then working crazy hours to meet the demands. It adds unnecessary stress and increases the chances of you ending up right back where you started with less money (insert repossession boogeyman noise here). Make sure to include the cost of your car and the interest of your payments as well.
2. Is the APR CRAY CRAY?
A cheap car means nothing if your interest rates are sky high. The higher the interest the more you have to pay back. Your annual percentage rate (APR) can produce major long- term savings IF it falls in the lower numbers. All my Young and Freeers, (ages 17-25), be sure you check out Michigan First because we have a 1% auto loan rate discount. That’s right we got your back!
3. Are the terms reasonable?
The terms generally define how long you pay off your vehicle. Try and stick with a shorter term like 3-5 years. You want the car for a long time, but you don’t want to be paying it off forever.
4. Have I compared prices?
My Great Aunt Annie Mae told me don’t ever buy the first cow you see, which makes sense if you think about it and apply it to vehicles lol. Walk in a dealership with a guaranteed loan, but not before you check out a few places first. Don’t cheat yourself, treat yourself! Take some times and look at a few other offers before you decided which one is the best for you.
Keep it Young, Fly, & Free