Okay, it's probably not a bumper sticker you see every day.
But healthy credit is definitely something to be excited
about, especially when it comes to that car, truck or SUV
you're thinking about buying. Good credit makes the road to
getting your dream car a lot less bumpy.
So before you cruise into the car dealer's showroom, check
under the hood of your credit. Get your credit report, make
sure it's shiny and clean just like that new car you're
eyeing, and you will have the credit score you need to
negotiate a lower interest rate on your loan.
If your credit report has a few bumps and scratches on it,
do what you can to address any issues with your report.
You'll be surprised at how much you can save on your car
payment every month.
What can you afford?
Before you shop, you need to make a budget so you know what
you can comfortably afford.
Look at the price...your down payment...your insurance
premiums... gas costs...and if you need the extras like
satellite navigation or leather seats. You should also look
at your debt-to-income ratio to ensure adding a new car
payment every month won't be too hard too handle.
Should you buy new or used?
Aaaahhhhh, there's nothing like that new car smell. On the
other hand, some could argue that an air freshener in a
previously-owned vehicle smells just as nice (mostly
because it's about $4,000 cheaper). When debating whether
or not you should go new or used, consider this...
Depreciation-New cars lose about 25% of their value each
year. When you buy used, you don't have to worry as much
about depreciation.
Costs-New cars not only have a higher price, they also
require higher insurance premiums. While used cars are
lower in price, you have to think about maintenance costs
of an older car. Also, you may be able to get better
financing on a new car.
Reliability & Warranty-The warranties on new cars give
owners the luxury of extra peace of mind. Many used cars do
come with limited warranties, but they're still not as good
as what you find with new cars.
In most cases, the question of new or used is answered by
what best fits your budget. Make a financially sound
decision. You can always get that dream car next time
around.
Is it better to buy or lease?
Leasing might be best if you prefer to drive a new car
every two or three years...if you don't drive more than
12,000 to 15,000 miles each year...if you can't afford a
large down payment...or if you don't put a lot of wear and
tear on your car.
Buying is probably best for you if you plan to pay off the
vehicle... drive more than 15,000 a year...don't mind
paying for repairs after the warranty is over...or like to
customize you car.
Buying a car doesn't have to be a fast and furious
decision. Sit down, think it through and you'll get the
vehicle that's right for you.
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TransUnion's TrueCredit.com has helped millions of
consumers manage their own credit health. TrueCredit
provides all the information individuals need to manage
their credit. TrueCredit.com products include online credit
reports, credit and insurance scores, credit monitoring,
debt management tools and identity theft insurance, all
designed to help individuals achieve greater financial
well-being, http://www.truecredit.com/
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