Very few people can pay cash for a VW Jetta in Chicago. Most individuals need to purchase a new car through obtaining a car loan. Following are four pointers to help you understand and get the best financing possible for your new vehicle:
· Determine your monthly payment first.
· Calculate your loan amount.
· Shop around for the best interest rates.
Determine Monthly Payment
The very first step is to figure out how much money you want to spend on a monthly car payment. Analyze your budget. It is best not to stretch your budget too tight with a new car payment. You never know when an emergency or event will arise where you will need extra money, such as medical bills or a surprise vacation. Once you have determined the amount of money you want to spend on a monthly payment, make a commitment not to go over that amount.
Calculate Your Loan Amount
With a figure picked out for a monthly payment, you are ready to calculate the loan amount that you can get. The Internet makes this very easy since there are several different loan calculators that you can find online. The loan calculators will allow you to include adjustments for add-ons, taxes, interest rates, cash down payments, etc.
Shop Around for Interest Rates
Interest rates vary from place to place. In order to get the best rate possible, shop around. There are several online lending institutions that will give you a quote over the Internet. Check out your bank or credit union. Also check with the dealership. Just because you get prequalified with a certain place doesn’t mean you are obligated to actually take out the loan with them. Sometimes a quote from one place can help you negotiate a better rate with another place.
Understand the Cost of Add-onsIf you are going to buy any add-ons for your VW Jetta in Chicago, remember that these will be added to your loan amount. Add-ons can result in a higher monthly payment. Therefore, in order not to go over your maximum monthly payment amount, you would need to shop for a different model or forgo some of the extra features for the new car.
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