Buying a brand new car was never easier! There are many financing options that can help you obtain it. What is really important is that you discipline yourself in your finances so that you can meet the requirements of a loan; for that reason I tell you the three most important aspects that you must foresee to cover it:
1. The down payment: A financial institution will finance between 80 and 95% of the total amount of the car, but the rest is an amount that you must cover as a down payment. Consider that the more contributions as a down payment, the less you will have to pay monthly for the credit you get; that is why the advice is to advance as much as possible so that the debt capital goes down and the interest rates are not so high. It is advisable to give at least 20% of the value of the car as a down payment.
2. The right payment for you. Many credit institutions already offer you the fixed terms; which gives you the certainty of how much you will pay in the long term so that you can have personal and / or family financial planning. In this sense, it will be easy to evaluate how much you can actually allocate to the monthly payment according to your budget. The golden rule says that payments should not exceed 20% of your net monthly salary; if you already have other debts contracted (credit cards or mortgage) the total of your debts should not exceed 30% of your income. This is very important to carry a healthy finances
Another tip that will surely help you with this planning is to approach the financial institution to request an amortization table, with it you will know approximately the amount that you would have to pay month after month until the credit is finalized. You can also request a calculation based on the price of the car you want, the amount you would give, the interest rate and the financing term. This will not only give you an idea of how much you can afford, it will also help you better compare the different options presented.
3. Additional expenses. They are independent quantities of the coupling, such as plates, insurance or commission for opening; You should check if these payments are considered in the credit or are something that you must absorb separately. Some banks offer to finance your auto insurance service; Ask about the conditions.
4. Possibility of early termination of the credit. This is a very good benefit for you, as terminating the contract terms in advance will not only allow you to have a clean credit history, but also have your finances for other projects. Before making an auto loan contract, find out if the institution has this possibility without penalties or with what characteristics, since some even offer different alternatives for the payments to be applied, having the option of reducing the monthly payment, maintaining the deadline original; or reduce term and payment, prepaying the last amortizations.