How to Buy a Car Without Draining Your Savings Account

how-to-buy-a-car-without-draining-your-savings-account

Buying a car in the Pacific Northwest has never been easier to do yourself. Whether it’s an upgrade or a first-time purchase, we have the need-to-know info to make your shopping experience as simple as possible. Hopefully, by following these five steps, you can shift gears into that peaceful PNW state of mind without coming across too many speed bumps.

1. Do Your Research

Researching thoroughly allows you to find the best auto loan and payment terms. Compare the offerings of multiple car dealerships in your area and weigh their loan interest rates.

2. Calculate What You Can Afford

Remember to keep monthly and mandatory expenses such as rent, groceries, and health insurance in mind when estimating a price range—you don’t want to drain your savings account. You will likely need to make a down payment, as well as continuous monthly payments, so be financially smart.

3. Apply Online

You can apply online to get pre-approved for a car loan with iQ. It’s generally better to have a pre-approved car loan before buying because you’re likely to get a better deal. Pre-approval also protects from sneaky car dealership financing tricks, which can save you thousands of dollars in the process.

Related: Download the Mortgage Paperwork Checklist for a detailed list of  paperwork you'll need to gather when applying for a mortgage loan.

4. Shop Around

Have some fun and shop around for your dream car! When you’ve picked out the winner, there’s always the option of applying for an iQ auto loan at the dealership—just ask for iQ Financing. If you qualify, you’ll receive the same great rates with the convenience of a one-stop shopping site.

5. Think About Insurance

Lenders sometimes ask about life and disability insurance, so it’s wise to understand how you and your family are protected. If you need coverage, jump back to step one and compare what’s out there.

You should also consider your credit score and the differences between particular types of auto loans.

Why Is Having a Good Credit Score Important?

It may seem like just a number, but a good credit score can determine whether you will be approved for a car loan. Credit is basically a history of what you have borrowed from others and how you’ve paid them back over time.

A good credit score can lead to lower interest rates, so it’s worth knowing your score before applying for a car loan.

Which New Auto Loan Financing Option Is Best?

If you want to pay less interest and have more money in your savings account, a shorter term car payment plan is a good fit. If a lower monthly car payment is more important, a longer term car payment plan might be better.

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