Should you purchase your car new or used? Before you make a decision, check out the incredible benefits of buying a used car here!Continue reading
Are you asking: ‘what type of loan is a car loan?’ Click here to learn about why it’s an installment loan and what that means for you.Continue reading
Looking to get some easy loans for cars? There’s something for every prospective auto owner! Here are some types that you can get with bad or low credit.Continue reading
Car depreciation is no joke. A car will lose 11% of its value the moment you first drive it off the lot. By its first year, it will have lost 25%, and come its third year, its value will have decreased by 43%.
That’s why many people are looking into secondhand cars instead. They’re considerably cheaper, but they’re not always a great deal. You first have to learn how you can find quality used cars for sale Janesville, WI has to offer.
Keep on reading and we’ll teach you how to be smart about it.
1. Know Your Needs
You first have to know what you need in a car, regardless if it’s secondhand or not. What’s your purpose for buying one?
Do you need it for carrying heavy cargo over long distances? Do you need one that can park in tight spaces? How many passengers do you intend to carry?
Knowing your requirements will help you find a car that best suits your needs. But, of course, you also need to consider your preferences.
Nothing is stopping you from buying a big car even if you’re the only passenger. You can also be choosy with the color as well as other features, like an all-wheel drive, leather seats, automatic emergency braking, and more.
2. Set Your Budget
Knowing your needs and preferences will also help you set a realistic budget. It must align with the car you want.
You should also decide whether it’s adjustable. Would you be willing to go higher if it means you’ll get the exact model you need?
If you have a set budget, you might have to adjust your requirements instead. Make a list of non-negotiable features, and see if you can work your budget around that.
3. Consider Your Financing Options
Even when buying used cars, you have a lot of car credit options. Secondhand cars are already cheaper, but you still have to consider the impact on your finances.
The general rule is that your monthly car payments shouldn’t exceed 15% of your net income if your only debt is a mortgage. This doesn’t include payment for insurance, fuel, and maintenance.
Car dealerships have in-house financing options you can consider. But, you can also check out banks or credit unions.
If you’re looking for easy loans for cars, you should look for local options. Check out auto credit in Janesville for starters. You can apply online, as well.
4. Go to Local Dealerships
Once you have a list of your needs and a budget in mind, you’re ready to look around for a car. Most people go to local dealerships first as it’s easier to shop when you have a lot of choices.
Look for a reputable car dealer in Janesville. Don’t hesitate to ask around; ask your friends, family, neighbors, coworkers, and such if they have a recommended dealer that they trust.
Remember not to buy on your first trip, though. Salesmen might give you tempting offers, but you’d be giving yourself future headaches if you dive in without researching first.
5. Check Craigslist
Craigslist is also a great place for finding quality cars for sale. However, you’ll have to wade through all the listings to find the perfect one for you.
This can be harder for some people, but you can easily browse the website during your spare time. As you’ll be dealing with individuals, though, you have to keep your guard up.
The adage, “if it’s too good to be true, it probably is” rings true here. Don’t transmit money, no matter what reasons they give you. You won’t miss a good deal if you don’t wire the money in 15 mins – but you’ll likely avoid getting scammed.
6. Browse Through Facebook
Facebook is also a gold mine for used things. People tend to overshare here, anyway.
The Marketplace seems like a good place to start for finding used cars. Search for “cars for sale Janesville WI” to see what’s available near you.
You should also join Facebook Groups; some have a specific purpose for selling used cars. They’re also a great place to get help as they function as a community.
7. Browse Used Car Websites
Can’t find the time to go to a local dealer? Visit used car websites instead.
The upside of this option is the same as going to a dealership – you can browse a wide selection of cars in one go. You don’t have to worry about getting scammed as long as you go to a reputable website.
However, make sure to still follow our remaining tips below.
8. Set Up a Test Drive
The car must be compatible with the way you drive. Whether new or used, you should test-drive all cars you’re planning to buy.
This also gives you a chance to see if there’s anything wrong with the car. Listen for unusual sounds while you’re driving, and check the integrity of the controls.
Drive over bumps, test the brakes, take tight corners, and so on. You want to ensure it won’t break down on you under the slightest stress.
If possible, try to schedule different appointments in a day. It will give you an excuse to go after the test drive, during which you can expect a hard sell. You can also compare several cars this way.
9. Inspect the Car
Do you know how to inspect a car? If not, you should bring a friend who does with you.
On the exterior, you want to check for scratches, rust, panel alignments, and such. The glass shouldn’t have cracks and the lights should be working still. The condition of the tires will tell you a lot; the car should still have the original ones if they have low mileage.
Under the hood, you should check the battery, radiator, and belts among others. Under the vehicle, feel the tailpipe and other components.
You shouldn’t trust whatever the seller tells you about the condition. The car itself will tell you if you know how to inspect it.
Compare Different Cars for Sale Janesville, WI
Never rush your decision when buying a used car. It can be a matter of life and death, especially as you don’t have the assurance of manufacturers.
Don’t miss the chance to test drive and inspect the cars for sale Janesville, WI has to offer. Then, compare to find which one’s the best fit for you. Contact us today and let us help you out.
Maybe you’re 18 and ready to own your own car or want to trade in your old car for something new and exciting. Unless you’re independently wealthy, you’ll need car credit. Modern cars, whether new or used, cost thousands of dollars and dealerships work with you to find lenders.
If you’re new to auto credit in Janesville, then you might not understand the process and what you need to get the best loan. One of the most important aspects of getting a loan is your FICO Score. The score helps determine if you can get a loan and at what interest rate you get.
We’ll examine the importance of your FICO score and what it means for getting a loan.
What Is a FICO Score?
The FICO Score was introduced in 1989 and stands for Fair Isaac Corporation. Fair Isaac was a data analytics company in California that specialized in credit. Founded in 1956, the company developed credit scores, but the familiar FICO score wouldn’t be developed until later.
When a person gets a loan, the bank takes a risk that the loaner might default on the loan. The bank must then go through a difficult and costly process to get the money and even then, may not get it back. They needed a way to determine based on the previous credit history if they are likely to default or not.
A credit report shows your credit history and if you paid your loans on time or not. The report is complex and while still an important tool, doesn’t provide a quick snapshot of your risk. The FICO score takes the credit report and other factors and boils everything down to a number between 300 and 850.
The higher your number, the less likely you are to default. The lower the number, the more risk. Today, the FICO score is the industry standard for most loans including those for a car dealer in Janesville.
What’s in Your FICO Credit Score?
The score takes in more than just your credit history. In fact, there are five primary aspects of the score beginning with your payment history.
Banks like customers that are easy. They pay their loans on time and don’t require phone calls or mail to remind them about it. Your payment history makes up 35 percent of the total score. The company looks at your other loans and debt to see if you pay on time or if you’re late.
Late payments can decrease your credit score. Defaulting on a loan, which is not paying on a loan until the bank gives and sends you to collection, can cause a severe credit score decline. Civil suits and bankruptcies also severely decrease your credit score.
Your outstanding debt makes up 30 percent of the total score. The less debt you the better off you are. The more debt you have the less likely you’ll be able to keep up with all the payments. Adding another loan could put you over the edge.
The length of your credit history makes up 14 percent of the score. The longer you’ve had good credit, the less risk you are. People with a short history are an unknown.
Someone with 20 years of car payments and house payments is less risk because they have a well-documented history.
Your account age counts for about 10 percent of the score. If you’ve had a house payment for 20 years, then it means you’ve been paying for 20 years. It’s the same with credit cards. If you’ve had the same credit card for a decade, then it shows can handle the debt.
The last part of the score is the types of credit used and makes up 10 percent of the score. A variety of debt through the years looks good.
Car Credit and Your Score
Lenders for automobiles are like other lenders and use the FICO score to determine risk. When you look for a quality used car, the lender uses it in its determination for a loan.
The average credit score is around 700. With an excellent credit score such as 750 or above, you have little worries about not only getting a loan but also a great interest rate.
If your score is 600 to 750, then you’ve got good credit. You have a good chance of getting a loan with a good interest rate for your car.
Scores of 600 or below, are considered a high risk credit score. You’ve had problems with credit in the past and you represent a high risk to the bank. This doesn’t mean you won’t qualify for a loan, but you have a higher interest rate.
If you want a car loan with a low credit score, decrease your risk by having a larger down payment. The higher amount you borrow, the higher the risk for the bank.
Improving Your Credit Score
You can get your credit score from the three primary credit bureaus: Experian, Equifax, and TransUnion. They provide both the score and your credit report. Look over your credit report because there are often errors.
If your score is low, then try to eliminate debt and pay your loans on time. Your credit score gradually increases if you have good credit practices. Car dealers have many different lenders to choose from including lenders that specialize in great credit to those that specialize in bad credit.
Don’t assume you won’t get a loan because you have a low credit score. Instead, talk to a car dealer and see what they can do for you.
Get Your Used Car Today
Don’t drive around in a car you don’t like. If you want something better, then you’ll need car credit. We’ve examined how your FICO score impacts your car loan and how you can improve your credit if needed. You can even apply online.
If you’re looking for an auto dealer in Janesville, then contact our experts today. We’ll find the best loans for you and help you find the car of your dreams.