Life Launch: Buying a New Car
Buying a new car can be exciting but easily overwhelming. What can you afford? Are you getting a good deal? Where can you get the best deal on financing? You probably have all these questions and more. Let Bank SNB help you get the car you want after you consider these factors.
What are you going to do with your current car?
If you have your own car, do you plan to trade it in or sell it?
If you’ve kept your car in good condition and have the maintenance records, you could try selling it yourself. On the other hand, if your car needs a lot of work now, you might be better off trading it in. Do some research on how much your car is worth before deciding.
How much can you afford?
It’s best to calculate how much you can afford, and find a car that fits your budget. Don’t jump at the chance to own your dream car, only to find out later you’re locked into a car payment you can’t afford.
To understand what you can afford, consider the down payment, the ongoing loan payments and insurance premiums.
A down payment is the up-front cash you pay the seller for your car. This is usually a portion of the total cost of the car and is typically a one-time payment. You will need to evaluate your financial situation to determine how much cash you can put down
Most people can’t buy their car outright, so they need a loan. Calculate how much you can spend on a monthly payment based on your current income and other expenses.
Don’t forget to get a car insurance rate quote for full coverage, which is required when you have a lien (loan) on the car. Most insurance companies offer a free quote and can provide the anticipated monthly payment with the car’s VIN number.
Tag, Title and Tax
You will also need to pay for your tag, title and tax. The DMV can help you calculate these costs. These will need to be paid for within 30 days of purchasing the automobile. If these are going to be paid for with loan proceeds, you will need to include when determining how much you can afford.
Once you’ve determined your budget for a down payment and monthly payments, use this calculator to determine the most expensive car you can afford.
It’s best to research all expenses before signing loan papers on a new car.
How do you get an auto loan?
Bank SNB offers auto loans with automatic payments from your bank account. That means, you don’t have to worry about late payments that could affect your credit score. To avoid any overdrafts, be sure you always have sufficient funds in your account when it is car loan payment time. Visit your nearest banking center to check current interest rates and start a loan application.