What advice would you give someone trying to finance a car for the first time?

Question

I have $10,000 saved up just for car alone BUT the car i want is $20,000 (Pls dont tell me to find a 10,000 car) 
What do i need to know b4 moving a step? What are your regrets about car financing? 
What questions do i need to ask? 
Is it better to get loan thru the bank or other loan places? 
*Im only 22years old and very naive to this. 
THANK YOU! 💕
Fyi: i have a good job and credit score of 763 ⭐️

Answer

I would suggest trying to finance through a credit union. They typically have better interest rates.

Answer

I prefer working with my bank to finance my car. They have a great rate, and I actually don’t worry about a down payment at all. I simply borrow the amount to need to pay for the car and they send that over to the dealer.
You could do this 2 ways- put down the 10k and finance the rest with very low monthly payments, or put down a few thousand and finance the rest. I usually put down about $4k, and then have a cushion leftover, but obviously having that cushion will cost you a little due to paying interest. I would avoid financing through the dealership. 
The one thing I think is really important is having gap insurance which basically makes sure if the car is totaled, insurance will pay you out the amount owed, rather than the amount the car is worth. This is important because the difference can be a few thousand dollars and it sucks to have to pay for something you don’t have anymore. 
If you bank with an awesome company like USAA, they are incredible about walking you through each step. If you let them know you don’t know what you’re doing, they will explain everything.

Answer

You wont need to use the full 10,000 for a 20,000 car. Get a car loan through a bank when you go to the dealership they will get you approved and help you with the paperwork. I have found huntington bank is the best for first time car buyers and those with new credit. A good down payment for a car is  1,000 or 2,000. Its good for your credit to have a longer loan so its continuous payments and longer loan life shows your good for your payments for a long time. Most dealerships dont even require a down payment

Answer

You’ll need to look at your Experian score, that is the one that matters the most and is not reported on credit karma.

Answer

Pre-apply with your bank first to see if you qualify to get the whole 20k financed. Perhaps you won’t need a down payment unless you want to. Pay attention to what rate they offer you!! Your rate is the most important part of it all. The higher the rate, the longer you will take to pay it off. With your credit score, I’m sure you can find a good rate. Ask about the cost to have gap insurance added. Set a payment budget for how much you can afford to pay monthly including car insurance payment. Good luck 😊

What advice would you give someone trying to finance a car for the first time?

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