Purchasing a vehicle, whether it’s pre-owned or new is a huge move. More than likely you don’t have thousands of dollars just sitting around – this means that you’ll need to finance a vehicle. By definition Financing means: the act of obtaining or furnishing money or capital for a purchase orenterprise. In this sense, that’s what you’ll be doing, you will be contacting financial institutions, either on your own or through a dealership to obtain money for the purchase of your vehicle. I’ve partnered with Oyster Bay BMW to bring you these financing tips for first-time car buyers.
Let’s talk about how your credit score can affect how much – if you can – borrow for your new purchase. While there are “Buy Here, Pay Here” dealers, your interest rates will be through the roof, and you will be paying more than the used vehicle is worth. This is where your credit score comes into play.
Boost Your Credit Score
If purchasing your vehicle is a few months away, you should start boosting your credit score. Ways you can do this is by:
● Start making ontime payments to your debtors
● Consolidate any student loans with a smaller interest rate and start making payments (Do not use deferment as a way to boost your score, you never know when you will actually need it.)
● Open a checking account and have direct deposit from your employer. This shows the financial institution and the dealership that you have an income and no overdrafts. (i.e you’re responsible)
● Contact any debtors you may have and work on a payment plan
Doing these proactive steps helps ensure that your credit worthiness is top notch, and dealers and financial institutions will not turn you away. Now that you’re ready to purchase the vehicle let’s talk about the different ways that you can get financing for your big purchase.
Finance Through This Dealership
Getting financed through this dealership and its partners is ideal. If you do decide to go through your dealer’s finance team, make sure you understand the interest rates, what your totals are, how long the loan term is for, and what you will be paying out of pocket at the end.
This is not typically a simple purchase, and it is something that can take a few years to pay off. Make sure to make on time payments for your car loan. Keep your credit clean and the next time you’re ready to purchase a new vehicle you’ll be prepared in no time.