4 Essential Auto Financing Tips – Miami Lakes Automall Kia
Buying a newer vehicle represents a huge investment on your part. Here at Miami Lakes Kia, we are pleased to help you by offering all the information you need to make the best choice. From our helpful sales team to our knowledgeable finance staff, we will take the time to learn more about your needs to help you get into a Kia that fits your needs and budget.
Before committing to auto financing, there are some things you should do to help you prepare for the process. By following these essential tips, it can make you confident that you are ready for the financing process.
Check Your Credit
Before applying for auto financing, it’s important that you examine your credit histories to make sure now is a good time to buy. To do this, order a copy of each of your credit reports for free by going to AnnualCreditReport.com. While it won’t provide you with your credit score, it gives you a good idea of what type of financing you may qualify for.
Assess Your Finances
Once you know your credit situation, it’s time to assess your finances. Examine your budget to see ways in which you can save money such as reducing trips out for dinner or eliminating unnecessary expenses like a cable bill. Once you determine that you have enough to pay your bills on time and save some money, you can see how much you have to spend on a newer vehicle.
Account For All Expenses
A common mistake many of us make is to only account for the vehicle’s down payment and monthly payment. Vehicle ownership entails multiple costs, which includes insurance premiums, maintenance, fuel costs and state registration fees. With this in mind, be sure to account for all these expense before you visit your Kia dealer in Miami .
Make a Larger Down Payment
The rule of thumb is to make a down payment of 20% of the vehicle’s purchase price according to Edmunds. The reason for this is with the depreciation of a new vehicle, plus the added costs of finance, registration and taxes, you want to build equity from the onset of the loan. Further, with a higher down payment you’ll receive added benefits such as a lower interest rate, a lower monthly payment, and most important you offset the depreciation of the new vehicle.
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