Just passed your test? Got your full driver’s licence? Always paid cash for cars? If you answered yes to any of those, this post is for you. Today, our Paris car loan team explains the process of first time car loans.
Paris First Time car loans for new buyers
You may be young and newly qualified or more experienced and have always paid cash for your cars. Either way, the car loan process can be confusing.
Here’s what you need to know.
Preparing for First Time Car Loans
Car loans, like many things in life, are mainly about the preparation rather than execution.
Preparing for the loan ahead of time can smooth the way and make the process much faster and easier. That’s primarily what this blog post is about.
Save for the down payment – The vast majority of car loans will use a down payment to lower the amount you borrow and to improve the chances of being accepted. Start saving as early as possible to minimize the amount you have to borrow and maximize your chances of being accepted.
Check your credit score – Your car loan will depend a lot on your credit score. It influences how much you could borrow and at what rate.
Some lenders have minimum credit scores they will accept while others do not. Checking your score early gives you time to improve it should you need to.
Assess how much you can borrow – Closer to the time, use a car loan calculator to see how much someone in your position could borrow. They aren’t exact but they are a pretty good indicator of amounts and likely interest rates.
Use this to set a strict budget for your new car.
Research cars – Leading up to the time you want to buy the car, begin researching makes, models, features and prices. Get a good idea of the car you’ll want to buy and shortlist a few to test drive.
Make sure to stay within budget as it’s very easy to overspend!
Get prequalified for the car loan – Paris car loan prequalification is like a dry run of the loan application. It will tell you if you’re likely to qualify for a loan and provide more accurate interest rates than a car loan calculator.
You can then make informed choices about rates and amounts with better information.
Get preapproved for the car loan – Car loan preapproval takes prequalification an extra step. It’s a specific query to a lender asking them for a quote for a loan.
You should only do this with the lender you’re likely to go with as it includes a hard inquiry on your credit report.
Get the loan – If the loan preapproval works for you, all you have left to do is bring all the preparation together and apply for the loan. You don’t have to go with the lender who preapproved you.
That’s the basic process of getting a car loan in Paris. It’s not as difficult as you thought right?
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!