By Jason McDonald


Are you in the market for a new car? One of the most things to be aware of is the importance of financing, which the likes of Bobby Jain can attest. Despite the complexities that one may associate with this process, it can actually be made simple if you know what you're doing. What should you do to get the best car at the lowest cost? Here are a few tips that will save you money, courtesy of Bobby Jain.

For those that are curious as to what goes into car financing, your credit score is a good place to begin. When you use your credit card with care, whether it's in terms of what you buy or how soon you pay off your bills, the aforementioned score will increase. What this means, according to financial authorities such as Bob Jain, is that you will be able to finance a car easier. After all, a solid credit score leads to a greater likelihood of being approved for loans.

Another way to finance a car is, before driving off with your new ride, putting down a down payment. Depending on your credit score, as discussed earlier, you might not have to cover this payment in the first place. If you have the option, you'd be wise to cover the down payment. It will ensure that you owe less money in the long term, and it can be argued that starting the payment process leaves the buyer feeling more fulfilled.

What if you're buying a new car with the plan of selling your old one? When it comes to the latter, make sure that you know its value. There are numerous resources online that you can take advantage of. Not only will you be able to determine how much your car is worth, but locations that will be able to take it for money that you can put toward your new ride. This is another way to make car financing less stressful on your end.

Finally, take your monthly income into consideration when selecting a new car. Let's say that, for the sake of argument, that you earn approximately $3,000 each month; you might want to devote $450 of that to your car, as this will keep you around the recommended 15 percent range. This statistic will vary depending on various incomes. Regardless, understanding this essential piece of information will make car financing that much easier.




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