Tips to Financing Your First Car

Tips to Financing Your First Car

Getting ready to buy or lease your first car? You’ve come to the right place! To help you put together a payment plan for your first car, we at Route 2 Auto Sales have put together this helpful tip guide. Below, you’ll find all kinds of information about budgeting, what expenses you’ll need to pay, and much more. Shoppers in the Warwick area should read ahead to get started!

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1. Understand Your Credit Score.

Our Financing TeamThe first thing you need to do before anything else is to check up on your credit score. First, make a soft inquiry on your credit score—a hard inquiry may lower your credit score. If it seems like it’s where it should be, you’re ready to move onto the next step.

If it’s lower than you think it should be, do some more digging. Request your official credit report and go through it with a fine-tooth comb to ensure there aren’t any mistakes and to see how you can improve it.

2. Determine a Workable Budget.

Vehicle Financing

The next thing you need to take a good, hard look at is your expenses. Take stock of what expenses you currently have and what you can get rid of to make room for a monthly car payment. As a general rule of thumb, you shouldn’t be using more than 15% to 20% of your monthly take-home pay on your car payments each month.

3. Don’t Forget Additional Expenses.

Dealership FinancingIt’s integral to figure out how much you’ll be paying in terms of monthly car payments. However, there are several other types of payments that you’ll want to factor into your budget, including:

  • Taxes on the vehicle
  • Fees at the dealership
  • Insurance for your vehicle
  • Maintenance and repairs

On top of your monthly payments and the down payment, you’ll need to keep in mind the additional expenses. Therefore, it’s important to keep your monthly budget on the lower end—it can help you afford maintenance or repairs when they pop up on you unexpectedly.

4. Consider Your Financing Options.

With your budget and credit score in mind, you’ll want to consider all your financing options. While you may have your heart set on buying your first vehicle, it may turn out that leasing is the best option for you in the current moment. Discuss with a finance professional who can help you figure out which is the best option for you needs.

Ready to Finance Your First Car?

We at Route 2 Auto Sales are thrilled that you stopped by today to learn more about financing your first car with us and hope you got all the information you were looking for. Now that you have a better idea of what you need to do, we hope you’re ready to get the ball rolling.

At our dealership, we have an expansive selection of vehicles to choose from and a friendly finance team standing by to help. Shoppers in the Warwick area should give us a call today to schedule a time to come in and meet with our finance professionals!

 

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