Auto Loans and Auto Insurance - Sources:
Now that you have finalized your car (used/new), it is time to look for financing options if you cannot shell out the whole amount for the purchase. Getting a loan from the right place is also a very important factor as it would have a good affect on the purchase price of your car. An APR rate difference of 1% would mean you would end up paying $550 more on interest over 5 years. So, in effect your purchase price of the car increases by that much. A little research on how the loans work and the factors that go in for someone financing your loan helps a lot in getting the loan from the right place, without screwing up your credit by asking the dealer to choose the financier. Before we go into where to go for the loan, finalize your loan amount and the monthly premium you can afford using the calculators below. The APR% looks small but a slight change in the rate would make quite a difference based on the time frame and the loan amount. The major question at this point would be how much to put down as downpayment when you are buying a new/used car. Here is a place which would assist you with that Downpayment Calculator. The best option, from my research for getting a good APR rate, is to get a loan from a Credit Union. You can easily become a member of the credit union with proper reference and get a much better rate. The misconception I have observed is that, you think, you can get a lower rate and better loan if you have a long standing checking/savings account with a major bank. NO. It does not work like that as most of the banks say their credit department is separate and they subject you to the same scrutiny as a non-account holder. If you wish to, go ahead and swim through the process only to end up with a credit union. Check for the current market APR rates at www.bankrate.com and then head over to the following sources which guarantee better loans for lower rates, if you cannot join a credit union. Auto Insurance: Getting the right Insurance for your car is daunting when you are doing it for the first time and more often than not, you go with the first insurance company someone close to you suggests. The merits of which will only be known when you get to deal with the claims processing of that provider. When you actually start looking for insurance, the plethora of different coverages is mind boggling and you definitely need information & advice in selecting the right options. For a little insight into the different options, please check How Much Car Insurance Should You Buy? article from carinsurance.com. Once you figured out how much you need and are willing to pay for, the following places will help you in picking the right provider. Get insurance quotes from all of the following places. Don't give SSN# at this point. Get the quotes, compare and then get the accurate quote from the place which has the cheapest quote. And if possible, get the renter's or home owner's insurance too, as this allows you to qualify for a group discount, reducing your overall insurance price. Also, keep in mind that some companies quote a monthly premium while others a yearly amount while majority of them quote a six month premium. So, when comparing get the right figures in place, calculate the net or per month value across quotes and pick the best. Insurance premium is also dependent on your location, personal qualifications, marital & parenting status, age etc and each of these could entitle you for a discount. So, always see that you put everything infront of the insurance agent so that you qualify for all the discounts you are eligible for. And don't forget to get the free maps/atlas just for getting a quote from the insurance companies. Yeah, you might already have a GPS but nothing beats a free ATLAS in those hard to reach places. And mind you, there are numerous insurance providers who boast providing the cheapest of all (I've seen companies which provide 6 months insurance for $100) but it is a nightmare when you try to use the insurance. So, my suggestion is to go with any of the reputed companies listed below. And, always ask for "full glass" coverage with no deductible as an option. This is not advertised but is a better option as you don't want to be paying $500 deductible from your pocket for the windshield that costs may be $600. |