How Much Auto Loan Should You Take to Buy a Used Car in Spartanburg?
You have guessed it right. As much as you need is indeed the wrong answer. Unless you have just inherited a truckload of money, you are probably a hard-working American citizen with a house mortgage and student loan and looking to take a car loan in Spartanburg next because you need a mode of transport. The good news is that with used cars, you do not have to think about a massive auto loan. The price is almost 50% less, to begin with, and you can cut down your budget by that much. However, there is a smart way to take used car auto loans so that you do not end up paying more than you need to and become financially strained in the process.
How much auto loan is ideal?
Experts suggest that you can take almost 90% of the used car’s price as an auto loan in Spartanburg. However, you need to consider a few factors before following that figure blindly. First, the loan amount that you take will determine the interest rate payable. If you take a higher amount as a loan, the interest rate will inflate proportionately and you will have to bear it at the end of the day. Next, the loan amount will also affect your current credit score. An additional loan will reduce your income to debt ratio and plummet your credit score for the time being. If you are thinking of taking another loan soon, taking 90% may not be ideal.
The best way to take an auto loan
Forget the 90% rule when you research used cars that you want to buy with a car loan in Spartanburg. Instead, think on the following lines.
• The total budget of your used car
• The down payment for the auto loan you are willing to pay
• The used car that you actually need
• And the monthly premiums that you can afford
Then, choose a reputed dealership like Family Auto where you will get access to a massive inventory. No matter what your answers are to the above pointers, you are sure to find a quality used car here as the dealership maintains vehicles in almost all price ranges.
And what if you have a bad credit score?
Then, you should be looking for the best used car lots that finance. Family Auto is again a top name here that offers auto loans to bad credit holders with an assurance of easy approvals and flexible financing offers. With a bad credit score, you should always be looking to pay a high down payment. And be sure to keep the credit span limited to 3 years as your associated risk inflates the interest rate.
The 90%-rule is just a guide for customers who want an auto loan in Spartanburg, SC. The real answer is as much as you can afford. Plan your finances before buying your next car; talk to the experts at Family Auto. With our trade-in policy and bad credit buy here pay here auto loans, you are sure to buy a used car with many financial worries.
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