So you’re thinking about buying a car but you aren’t really sure where to start. Well, most people start by looking for a type of car they might want. But the fact is, if you’re thinking about buying a car, and getting an auto loan to finance it, there are some things you should do first… before you ever set foot in a dealer showroom or go meet a private seller to by a car from him or her.
Purchasing a vehicle is a huge decision. For most people, it’s the largest purchase they’ll make in their lives with the exception of a home. The potential for you to pay far more than you need to… or get yourself in a bad situation is substantial. So before you think about buying a car… think a little bit about yourself.
How good or bad is your credit situation?
The first thing you should do when you are thinking about buying a car is to take an honest self-assessment. Understanding where one is in terms of income and debt, as well as credit rating, is the first thing you should do before you buy a car. To do this, spend some time looking at your finances and your credit. The things that are important in assessing your credit situation are encompassed in the sections that follow.
What You Should Do Before Even Thinking About Buying A Car: Section List
- Evaluating your debt-to-income percentage
- Knowing your credit score and why it’s so important
- How to get your credit scores for free
- Understanding what kind of finance borrower you are
- Knowing what problems can stem from a poor credit score
- Taking a look at your credit report and fully grasping what’s on it
- Looking at the things you can do right now that can help you get an auto loan
- How to improve your credit score
- Taking a self-assessment of yourself and your lifestyle
- Evaluating if you are “upside down’ on your current car loan
- Seriously consider implementing a Get out of Debt plan
- Check out our comprehensive guide to debt collection
