When Is The Right Time For A Car Loan?
Can you believe that somewhere into the twentieth-century, people would consider a horse-driven stagecoach as their ride of choice? Well, it's romantic and all but you just cannot compare it to today’s interior car upholstery, comfort, luxury, and function. All the same, let’s not dwell so much into the past. Today, owning a car provides you with much more than just your mobility needs. You can attend to an emergency situation at whatever time of day, travel at your convenience, and hey, brag a little? But it costs to own a car! The initial installment is perhaps the most expensive, not to mention that you’ll have to foot the car’s maintenance costs for as long as it’s under your ownership. Car loans are perhaps the most convenient finance options when it comes to purchasing a car. But the question is, when is the right time for a car loan?
1. After Establishing Good Credit
The first thing you need to consider before taking a car loan is having a source of income. Owning a car comes at a cost! As earlier established, there’s the initial purchase cost and then there are the regular maintenance costs. In addition to this, the financial advisors at MoneyExpert.com say that to qualify for a car loan, you need to have a good credit rating. This is because the first thing your lender will do is dig into your credit history to determine your ability to repay the loan. You, therefore, want to establish a good credit score before you can even think of a car loan. There is also the insurance aspect part of owning a car. You want to ensure that your ride is protected against theft, accidents, and fires, right? In this case, it’s best to insure your car before leaving the car dealership. All these will require financing, and these are all the more reasons to ensure that you have your finances in order.
2. Determine The Best Time Of The Year
The time of year you decide to take a car loan is also crucial. Seasons dictate the lender’s aggressiveness, especially when it comes to competing on market shares. Mid-year happens to be the best time to consider a car loan. This is when banks and manufacturers are up against time to make subsidy returns on the tough months ahead and as a result, car model prices tend to go down.
3. In Your Youthful Years?
Not many will agree that the best time to apply for a car loan is before hitting 50. Now, various factors can affect the overall cost of owning a car. For instance, if we consider the cost of financing your car insurance, age can play a huge role that ultimately will impact the insurance cost. According to most insurance providers, younger drivers are at a higher risk of being involved in an accident. It's for this reason that younger drivers will be forced to dig deeper into their pockets when paying for their car insurance policies. After a certain age, mostly after 60, car insurance costs tend to stabilize.
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