Car Loans Arkadelphia AR
West Helena, AR
Although this web site is primarily about car leasing, many of our readers tell us that they have decided, instead, to buy with a loan. They want to know if we have tips and advice that might help them. Hence, this article, just for them.
Car loans are generally better understood than leasing, but there's much room for information and advice, particularly for inexperienced car buyers.
A car buyer's first encounter with loan payments typically comes from car salespeople who ask, "What kind of monthly payment are you looking for?" This is certainly a legitimate question but if you don't know how payments relate to vehicle price, interest rates, and loan terms, you are subject to paying too much, or even getting cheated. You may want to read our article, "."
Why do you need a car loan?
There are really only two reasons for needing a car loan:
- You don't have the cash needed to purchase the car you want.
- You have the cash, but you have better uses for it, such as for investments, paying off bills, or saving for emergencies.
If you are in the first category – don't have the cash – make sure you've taken a serious look at your finances to understand what you can afford.
Many car buyers, particularly new ones, overestimate their ability to pay and buy more car than they can afford. They often overlook the other expenses of owning and driving an automobile: insurance, gas, oil, routine maintenance, taxe...