You have a lot of choices to make. Let us help!
The freedom you get from owning a car is undeniable! Whether you’re looking to get a vehicle as a reliable mode of transportation or you have your sights set on an endless road trip, there’s certainly many perks to having your own transportation. However, there’s plenty of factors to take into account before hitting the road.
From finding to financing, the whole process can feel overwhelming. In this Clearview article, we’ll explore a few questions to ask when buying a car.
What can I afford?
Before you buy, it’s important to figure out how much you can afford! Most people can’t buy a car outright, thus resulting in a need to get a loan and ultimately adding a new monthly expense to your budget. Since your monthly payment is just as important as the sticker price, we have a Vehicle Payment Calculator to help you plan accordingly.
But that’s not the only expense you need to consider! Be sure to leave a buffer in your budget for inevitable costs like fuel, maintenance, inspections, etc.
How do I get an auto loan?
Traditionally, you can obtain lending through banks, credit unions, or dealerships. If you choose to go the financial institution route, it’s best practice to shop around. And you’ll want to get a few pre-approvals to make sure you’re getting the best deal possible. If you’re looking for more information about the pre-approval process, check out our Guide to Auto Loans.
When you do dealership financing, you’re ultimately signing an agreement directly with the dealership. The dealer may keep the contract, but it’s usually sold to an assignee, bank, finance business, or credit union that manages the account and collects your payments. There are certainly pros and cons to every type of finance option, so be sure to do your research and know the right questions to ask when buying a car.