Smart Ways to Buy a Car Chapel Hill NC

It's a classic scenario: you want a car loan but don't have any real credit history. Many first-time car buyers think they'll either have to buy some old beat up car for cash or accept financing terms that anyone else would find outrageous.  The truth is there are several things you can do today to get you behind the wheel of a solid car and still leave you with enough money to fill up the tank.

Step one: I can't stress this enough-Get your credit report and credit score from all three credit bureaus (Experian, Equifax and TransUnion.)  You need to know where you stand.  Are you certain your student loan consolidation got reported correctly?  Or how about that time you were late paying your credit card?  Maybe you forgot, but the credit bureaus didn't.  The dealer will pull your credit reports, so make sure they are accurate and that you've taken care of any outstanding problems.

Step two: Take a realistic look at your finances.  After all other expenses, how much can you really afford to put toward a car payment, insurance, gas and maintenance? You'll be a more attractive buyer if you can provide a decent down payment and keep your car payment to a low percentage of your monthly income.  

If you've got a couple cars already in mind, go online to get several auto insurance quotes.  Many financing sites like ToyotaFinancial.com provide on-line tools to help you estimate payments.

Play with the numbers and remember a lower annual percentage rate (APR) with longer terms will give you lower monthly payments - the flipside is that you'll pay more in interest over the life of the contract. To help save more money, consider taking a contract with a shorter term.