Finance: Let's Talk Auto Loans
Life Update: I’m officially an advisor focusing on all things lending. I love all things banking and finance but I have officially said goodbye to retail banking and officially a corporate office shawty lol focusing on all things lending and helping people achieve their financial goals. Enough about me…
So The Auto Loan industry is crazy right now. Let’s blame covid, right? lol Newer cars are SO hard to come by because inventory is super low. If you have an older car, you can prooooobably get a great deal on it but the real tea is, its going to be harder to shop for a new car because there aren’t that many options. Used car sales were up by about 10% last month. Crazy!! Anyway, i just wanted to give you some car buying tips:
Get preapproved first! What this means is that you go to your financial institution, getting your credit pulled ONCE, and getting proved for a specific amount. What will your interest rate be? Well honey, that is based on the year of the car, term of the loan, and your credit score. This preappproval locks you in for an AMOUNT.
Do not ask your lender (me) how much you can get preapproved for because ummm…I’m going to ask you how much coin you make and also, what you can afford lol
If your credit score is glorious, this doesn’t mean that you will be approved. Is your debt still high? Have you filed bankruptcy recently? Etc. Be smart aboutt your purchases. Just because you have an 800 credit score, donesnt mean you can afford a Tesla. Let’s make it makes sense. Let’s not keep up with the Kardashians lol
Research, Research Research. Do some reasearch before being gullible walking in to a dealership because thats how they get you.lol Make sure that they aren’t selling you a car for way more than its worth.
Auto Loan Rates are always lower than personal loan rates so if your buying a car, make it an auto loan. You don’t need a personal loan for this unless you are buying a super duper old car thats not even worth the time spent on an auto loan.
Understand LTV: Loan to value. How much is your car worth? $15k! Ok, lets not take a loan out on this car for more than 120% or less of its value. Meaning, you should NOT borrow more than $18k on this car. $15,000 x 1.2 = $18k. Now I would like to see you borrow less than what the car is worth but I understand, things happen and you may need to factor in the taxes, etc.
If you are putting cash down on a car, that is NOT factored into the loan. if the car is selling for $15k and you are putting down $2k, this means that your loan is for $13k.
I can go on for days but I won’t. If you have any questions OR would like for me to lend you some coin lol, don’t hesitate to reach out!!!! & That’s on what……y’all know the rest lol
