3 Things To Do When Considering Auto Loans
There are a lot of perks to owning a new car. The vehicle is often covered by a warranty for the first few years of ownership, meaning some hiccups and repairs are covered by the manufacturer. There is no wear and tear on the vehicle, which means no hidden problems waiting to emerge.
But unfortunately, new cars are expensive. Even with cheaper makes and models, you’ll be hard-pressed to find anything on the market for less than $14,000. That’s not an out-of-pocket expense many people can make. This is why auto loans are so popular. But before you sign up, there are some things to consider.
Weigh Your Options
Another avenue is to lease a vehicle. The monthly payments tend to be less than a loan. However, leasing is very literally just borrowing. This means that the dealership will sometimes cover the cost of minor repairs associated with wear, but you have to keep the vehicle in tip-top shape, and at the end of your lease period the vehicle goes back to the dealership. You may then be able to buy it, but you might also be penalized for a scuff or scratch they feel decreases the value.