Financing a car

Financing a car

The first question to ponder before buying a car is that can you really afford it? Here affording does not only mean that you can buy it but also if it will be feasible and economical for you to pay expenses that come with a car such as gas, maintenance costs and insurance premiums. Buying a car serve you well in the long term for ease of transportation, much needed time and also to lower transportation costs. The first step towards attaining this solution is to skip class and beauty and go for practicality instead. Find out which type of vehicle best suits your transportation needs. Do a little research or ask around if you are not really sure about this. For some a car is just a means of moving from here to there while for some it is a status symbol and source of pride. Since you are a college student needing to pay off loans falling into the second category is not an option for you.

Buying a used car is the ideal solution for students to finance a car with a low amount. There are great deals to be found for cars that have been used for just 2 to 3 years. Many car providers have loans designed specifically for students. Find out which one suits your needs best by comparing the loans provided by other companies. Be realistic about the amount you can pay monthly to repay the loan. Ideally it should not exceed 10 to 12 percent of your monthly income. Pay as much in down payment as you can while shortening the time frame of the loan as much as you can. Read the fine prints of your loan contract and make sure you understand all the terms implied in the contract. Be clear about what you want before approaching any car company. This way you can avoid getting lured into any sales traps.

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