If you're just looking for the cheapest way to get a vehicle, buying a used vehicle is the way to go. Many vehicles last longer these days, and used cars come with more standard equipment than they did a few years ago, and used cars tend to cost less than new ones. One of the best ways to save money on an auto loan is to not get any loans. If it's possible to pay cash for your car, it's highly recommended.
Since you won't be charged any interest, you'll end up paying the least amount possible for the car in the long run. Getting all payments out in advance can be a big help. If you want to buy a new vehicle at the best possible price, it's a good idea to get pre-approved for a loan. Get pre-approved by your bank, credit union, or other financial institution and take that pre-approved loan to the dealership when you shop.
This will give you something to compare with the rates offered by the dealer. Often, if you show up with the grantee with a pre-approved loan from a lender, you can take advantage of it by negotiating terms. You can also get a loan with conditions you're comfortable with. It is recommended that your loan be no longer than 48 months and that your monthly payment does not exceed 15 percent of your income.
One of the best ways to improve your credit rating is to keep your credit card balance low. It's recommended that you keep your credit use below 30 percent if you want to keep your credit rating as high as possible. You should also limit the number of tough inquiries about your credit, which occur when you apply for new cards. A great way to drive a new car without the hassle of getting a loan is to lease a vehicle instead.
Leasing is a good option for those who like to drive newer cars and don't want the responsibility of owning them. Many leases are available for 24 or 36 months and will have a set number of miles allowed depending on the terms. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We have maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in what steps to take next.
Indiana residents drive a lot about 18,000 miles compared to the national average of 13,000 to 14,000 miles. If you're willing to drive to Indianapolis, or already live in the area, it's a good place to start looking for a used car. It's also a car-heavy city, so if you live in or near the Orlando-Daytona Beach area, it's worth traveling to get a relatively inexpensive used car.