Chi Ishobak offers consumer loans for vehicle purchases. We also practice responsible lending. With this being at the heart of what we strive to do, whether you apply for a loan with us or choose to get a loan from another lending establishment, we want to help ensure that you get the best deal on the vehicle you purchase.
Before the search for your next vehicle begins, there are a few things to consider. You should know the price range of a vehicle that you can comfortably and responsibly purchase. Once you are on a car lot, you may feel pressured by the salesperson to look at vehicles above this price range. Prepare yourself and stay within your buying means.
Research the vehicle you are interested in purchasing. Be vigilant and compare the sale price to the retail value of the vehicle. We recommend using the National Auto Dealers Association because it is a respected source and is user friendly. If a vehicle is marked above the “clean retail” price listed on the website, do not be afraid to negotiate a fair price or prepare yourself to walk away from what could potentially be a bad deal for you.
Your next step in the car buying process to consider is the interest rate of a loan. If your credit score allows room for you to finance from your bank or credit union, you will get interest rates ranging from 3.9% to 5.9%. If you need assistance due to little or damaged credit, you may consider financing through the dealer or a lender who specializes in higher risk loans, ranging from 12% to 24%. Try to avoid paying high rates that will cost you unnecessary spending over time.
The term of the loan you negotiate is an important factor to consider. A trick that salespeople use to lower monthly payments for customers is to extend the term of a loan. The term is the length of time you are obligated to make payments on the loan. Lengthening the term will certainly make a loan look as though a customer is getting a good deal by lowering your monthly payments, but this masks the fact that your payments and interest rate will cost you more over the life of the loan. When car shopping, consider the life of a vehicle. New car loans have terms up to seven years or 84 months, whereas used car loans have terms up five years or 60 months. If the term of the loan is longer than the life of the vehicle, you may want to reconsider your purchase.
Other costs that come along with your purchase include the tax, title, and insurance of a vehicle. You should include the cost associated to cover these additional expenses when considering whether you are prepared to purchase a vehicle. Consider the cost of coverage for state minimum liability or comprehensive and collision coverage insurance. You should be considering the definite cost difference between the two, so ask whether one insurance coverage is required over the other when making your vehicle purchase. Contact your insurance agent to price coverage once you have a vehicle in mind.
Chi Ishobak is a potential source for vehicle financing. Our goal is to help you avoid predatory lending practices that can financially harm you and your credit. We can answer your questions and honestly discuss whether we are your best route for financing. Call us at (269) 783-4157. Chi Ishobak is here to help with your financial needs.