While some home Internet business owners can perform all their business tasks at home, others may have to go out frequently or occasionally to meet with clients or business associates, monitor projects, purchase supplies or carry out other responsibilities.
If your home business requires you to be on the move from time to time, having a vehicle of your own can help you save substantial time, effort and money. If you are planning to purchase a vehicle, you will most likely have to get an auto loan first.
Here are a number of useful tips on how to secure auto financing….
Check Your Credit Score
Auto lenders will look at your credit score to determine your eligibility for auto financing and the interest rate you need to pay. A good credit score can help you secure an auto loan more easily and get a lower loan rate.
As the following article looks at, on the other hand, getting a car loan with bad credit while self-employed can be difficult.
There are many lenders and auto dealerships that offer bad credit financing, but they usually charge high interest rates. If you have a poor credit rating, you may want to consider using a co-signer to apply for an auto loan.
You can check your credit score for free at Credit.com or AnnualCreditReport.com, but the credit score you see may not be the same as the one lenders see. Auto lenders usually use credit scores that are customized for them.
Choose a Repayment Plan
Before you choose a repayment plan, you have to determine how much you can spend on car payment every month. Auto loan terms typically range from three to six years.
If you want to pay less every month, you should opt for a longer-term loan. It is important that you factor in the costs of insurance and maintenance as well.
While these costs will not be included in your monthly loan payment, they can affect your ability to meet your loan obligations.
It is a good idea to shop for a car loan online, but you can also try local banks or credit unions. Compare offers from several reputable lenders and choose the one that offers the best deal in terms of interest rates, loan limits and loan terms.
If you are eligible for a loan, the lender will issue you a pre-approval that will be valid for a certain period of time.
You are allowed to spend less than the pre-approval amount, but you cannot spend more, unless you wish to use cash or trade in another vehicle to make up the difference.
Choose a Vehicle
After you get pre-approval, you can start choosing a vehicle.
One of the advantages of being pre-approved is that it enables you to focus on negotiating a good deal for the vehicle you wish to buy, instead of having to negotiate financing too.
Once you have selected a vehicle and agreed to the price, the auto dealer will work with your lender to finalize the sale.
Now that you know how to go about securing auto financing, you should have no trouble getting the best loan and your desired vehicle, allowing you to meet up with clients whenever needed.
Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to running a business.