“Get Smarter About Auto Financing”

When it comes to securing auto financing, there is a lot to consider. From finding the best rates to determining what length loan works for you, it’s essential to understand all aspects of the decision. In this article we’ll look at ways to become smarter about auto financing and how to use Consumer Portfolio Services to help guide you through the process.

Understand your Credit Score

No matter what type of financing you seek, knowing your credit score will be essential in gauging where lenders may be willing to extend credit. Credit scores range from 300-850 and are largely based on the factors contained in an individual’s credit report. Generally, the higher your credit score, the better your chances of qualifying for more favorable interest rates.

Determine Your Budget

Another crucial factor when searching for auto financing is understanding your own budget. Not only should you determine monthly payments that work within your financial means, but also consider other expenses associated with ownership such as taxes, insurance and maintenance costs. Additionally, don’t forget to think about any existing payments or debts you have in order to ensure you have enough to cover all necessary expenses.

Take Advantage of Online Resources

Nowadays, researching auto financing options can be completed from the comfort of your own home. Sites like Consumer Portfolio Services offer customers the ability to explore auto loan calculators, repayment plans, pre-qualification steps and more. Taking advantage of online tools allows potential buyers to educate themselves and gather helpful information prior to beginning the application process.

Shop Around for the Best Rates

It’s one thing to become informed yourself, but also make sure you shop around for the best rates available. Comparing terms and conditions between different lenders will not only make you aware of the different products available, but also ensure you make the most suitable selection for your particular situation.

Know Your Financing Options

Ultimately, the auto financing decision boils down to your individual needs. Decide whether you prefer a shorter or longer term loan, fixed or adjustable rate and the type of lending institution you want to use. Keep in mind that using a direct lender or a dealership may offer you different advantages. For instance, borrowing directly from an online lender may be less hassle, while working with a dealership is preferable if you are looking to save time during the application process.

Whichever route you decide to pursue, remember to always read the fine print and make sure you fully understand what you are signing. Take the time to research various options and carefully calculate all associated costs so you can come to a smart decision when it comes to auto financing. And above all, don’t forget to leverage the educational resources offered through companies like Consumer Portfolio Services so you can be confident in your decision.