Car Financing - How To Qualify For Your First Car Loan

Oct. 23, 2009 - PRLog -- Few things beat the thrill of driving your first car, especially when you have bought it yourself. Owning a car becomes a necessity on starting a new job or college.  Two options are available to you when purchasing your dream car; to either pay cash or seek car financing (http://www.crestcarloan.com).

Students and novel car buyers, find it difficult to get the cash to buy a car due to their low income and poor credit history. However, qualifying for an auto loan is easy if they put into consideration the following pointers on how you can qualify for first car loan (http://www.crestcarloan.com).

1. The decision on whether to buy a new or used car will affect car financing (http://www.crestcarloan.com). Although the price of a new car is usually high, you can get low rates of interest and lengthier payment terms with warranties and no costs of repair and maintenance. This ultimately means a reduction on the monthly payment. On the other hand, used cars cost less but have higher interest rates. This is because of the decrease of the resale value and lender risk of loss in case of default. There is also maintenance and repair costs to be considered. It is prudent to be accompanied by a mechanic when you go to buy a used car.

2. Consider down payment when getting car financing. You can have your monthly auto loan payments (http://www.crestcarloan.com) reduced if you pay a minimum of 205 off the purchase price as down payment. This will save you from ever being in a situation whereby your car debt is more than your car's worth.

3. Getting preapproved is one of the best ways to secure car finance (http://www.crestcarloan.com). It enables you to be clear on the price range, loan amount and acceptable rates. This strengthens your bargaining position and also enables you to get lower interest rates.

4. Before buying a car you should research on the various lenders and compare quotes. This way, you will get a car at the best price and terms. You can easily do this from the internet.

5. As a novel car buyer, your credit worthiness may not be proven which means that most lenders may not be enthusiastic in car financing you. However, you can transcend this by obtaining a cosigner who is a person with good credit that agrees to for make payments, should you default.

The process of car financing (http://www.crestcarloan.com) your first car may be perplexing for most first time car purchasers but the above tips should clear any confusion and set you well on your way to acquiring your first car.

Crest Car Loan is your best source for car loans or bad credit car loans online. If you have really bad car credit, bankruptcy, poor credit or a low car credit score we have car loan programs that can provide financing at low interest rates that will help you buy the new or used car you really want at payments you can afford. More information about Crest Car Loan can be found at http://www.crestcarloan.com.

# # #

Crest Car Loan is your best source for car loans or bad credit car loans online. More information about Crest Car Loan can be found at http://www.crestcarloan.com.