It’s a lifelong dream for some people to pay off their car and once you do what do you do after that? Most don’t know, but it’s a good feeling to have when you out right own your car.
Most car buyers finance their car for 5 years. But if you have bad credit you may get over charged, yes it happen car dealers and financial places like the bank like to charge higher interest rates.
Pull all of your credit reports so that you can find out what is pulling your score down. Let’s say you have credit card debt? All you need to start doing is paying those cards down.
And that might increase your credit score a bit to get you a better rate for your auto loan term. You could buy a newer car than a used car because new cars sometimes have better terms.
You could also go for a shorter term loan than a longer term loan; usually a 3 year loan costs less than a 5 year loan.
Be curious about car dealers and their mark ups. They a lot of the time want to steer you into a higher costing loan, it’s a bigger pay day for the car dealer.
Watch out for what the call yo yo financing for a car in Atlanta. What does that mean? It’s when a car dealer will promise you a good auto loan rate one day like 2.4% and the next day hikes it to 7.2%. Not a dealer you want to work with.
When you have bad credit you don’t want to get the dealer to start talking to you about car add ons that’s where they spike the price too. Just go with the simple coverage if need be but rust covering and sun roof can wait.
There are tons of factors for a new and used car in Atlanta. We recommend doing a cost analysis for the car before you sign on the dotted line.