Perfil de usuario/a

Mrs Aniya Hampton

Resumen biográfico Green Trust Cash Short-term Payday Loan: Is It Part Of The Car Buying Process?green trust cash bad credit loans lenders

Deciding on how much to spend on a new or used car can be quite a decision. Unlike some other expenses you may have, you should be in the drivers seat when it comes to purchasing an automobile. Whether you finance with the dealer, utilize a short-term payday loan to help with the down payment, or pay cash (wouldn't that be great!), the decisions you make could affect your finances for years.

Depending on where you live, you may or may not have to spend a lot on a car. In fact, living in certain cities like San Francisco or New York can help you avoid buying a car altogether. Mass transit offers city dwellers the options to commute to work via train, subway, bike, roller blades, or even walking. But if you live in the suburbs, country, or city where things are spread out, chances are you will need a car to get around. Even then, it doesn't have to cost you a lot. If you're on a budget, taking out a short-term payday loan may help get you around the curves of the initial down payment that is usually required when purchasing a car or truck. But you also have to consider how much you can pay for your new wheels. Will you pay cash or make payments? Lease or buy? It's important that you take time in advance to decide how much you will, spend before you drive off the lot.

Sadly, many middle-income families spend more than they can afford when they purchase a vehicle. The folks at Interest.com did a study on the average prices that a median income family spends on a new or used car. The study showed that in most every city, Americans families in this income range cannot afford what they have paid for a car or truck. So do you really need a ton of horsepower, all the fancy gadgets, or the biggest SUV on the lot? Car salespeople will try to get you to spend as much as possible because that is how they make their money... but it doesn't mean you will be able to afford it.

Follow the 20/4/10 Rule to Control Car Expenses and avoid buying a car you can't afford.

Give AT LEAST 20% in the down payment

While some dealers will accept less, putting 20% or more towards the down payment will prevent you from assuming a green trust cash loans for bad credit direct lender that your budget is not able to handle. The more down payment, the less your total loan and monthly payment will be. If you don't have at least 20% to put down, it may be a sign that you can't afford the vehicle. Seeking the help of a payday green trust cash bad credit loans lenders lender may help get you the money you need for a down payment but remember, it will have to be paid back with your next paycheck.

Don't finance for more than four years

Typical loan terms range from 24-72 months. The faster you pay off your car, the less you will pay in interest over the duration of your loan term. That means double if you choose a 6-year term versus a 3-year loan duration. Paying off your green trust cash online installment loans no credit check instant approval with a shorter term also means you will pay less car insurance. Once your car is paid off, you can drop collision and comprehensive insurance which is required by all lenders including banks and credit unions.

Monthly payment under 10% of your gross income (principal, interest, insurance)

Your monthly car expense which include your payment and insurance should not exceed 10% of your monthly gross income (the amount before taxes). Less is even better. While lenders will most likely offer you longer terms thus making your payment lower (some may even offer "no down payment"), keep in mind that you will only end up paying more for your car in the long run. You may have to reconsider the sticker price in order to make your payment work for your budget and stay under 10% of your monthly income.

While the 20/4/10 is only a guideline to help you in the car buying process, it can help you stay within reasonable budgeting boundaries. Some financial experts will advise that the total monthly cost of a vehicle, including car payment, insurance, and repairs should not be more than 20% of your total take home pay.

Consulting your budget ahead of time will help you set purchasing parameters. Set a price you are willing to pay and stick with it. Be honest with yourself about what you can afford and don't get sucked into what the salesperson offers you because it sounds "to good to be true".