How to Finance a Car

1. What are the three instances when paying cash is a good idea when purchasing a car?- In addition to the usual shorter term of the loan, you have to qualify for that rate. In most cases, if your credit score is lower than 680, you won't be able to get the lowest rate. You may be limited to buying from what's on the lot, rather than being able to order a car with the exact features you want. Know that by going for the low interest rate you usually lose the cash rebate. It's one deal or the other -- not both
2. List the five ways that you can finance your car.
- Bank, family member, credit union,
3. Which way do you think is the best to finance your car? Explain your answer in 1-2 complete sentences.
- Pay for it with money you already haveso you dont owe someone.
4. What information is gathered from your credit history and credit score?
- To see if you pay your paments on time.
5. What has a higher rate? New or used cars?
- Used car has a higher APR.
6. Explain why you must negociate when you purchase a car from the dealer.
- So you and the dealer are cool and you might have a chance to get a discount.
7. Explain three reasons why getting 0% APR is much harder than advertised.
- A shorter term loan, You could only buy certain cars on the lot, and if you go for the lowest interest rate you might lose the cash rebate.
8. What are the five things you need to pay attention to when getting a car at the dealership?
- Extended warranties, Rust protection, undercoating, fabric protection and paint protection, Alarm systems and window etching, and insurance.
9. What are the four things for Buyer Beware? Explain EACH.
- Spot delivery- they dont check your credit score, Additional Mark-up- They raise up the price at the last minute , Credit Report- They check in you make payments on time, How much is the total financed amout- How much did the bank loan you.