For muscle car lovers, the dream is to own one of your own. However, they can be too expensive for the average worker. In order to get your hands on one, it is likely that you will need a loan. Getting the best loan is one of the key considerations when buying a car, which can mean the difference between a vehicle which is affordable and one which is not. Here’s how to secure a loan for that perfect muscle car.
Check Your Credit Score
Your credit rating is a way of quantifying your trustworthiness and likelihood of you being able to repay a loan. A higher credit score means you can secure a loan with a lower interest rate and therefore be able to afford a more expensive vehicle.
If your rating is low, firstly check your report for mistakes. If a payment was wrongly marked as late, you need to get this changed to see your score increase. Once all mistakes are ironed out, take steps to improve your credit score. This will involve paying off all existing debts or consolidating them into one monthly payment to make repaying them easier and cheaper.
Get the Shortest Term Possible
You should never get a long car loan. The longer you are paying, the more you will spend on interest on a vehicle which is depreciating in value. The average car loan is now five and a half years, but financial experts believe that you should be paying for a car no longer than four years. If you can’t afford to pay for the vehicle in full within four years, then you can’t afford the car.
Pay at Least 20% Up Front
One way of securing competitive loans for a vehicle is to put down a large deposit. Some car dealers will allow you to take home a car without paying a single dollar up front. While muscle cars retain much of their value, depreciation is a problem for any car buyer. By putting down 20% up front, you can ensure that you don’t owe more than the car is worth after the first year. With less to repay, you will get the car at the best possible price.
Buying a muscle car largely comes down to smart financing. Ensure you have paid off all existing debts of time and have good credit to get the lowest interest rate. Then take out a loan which is no more than four years long and pay at least 20% up front to make remaining payments as affordable as possible.