When to think about an Auto Loan

Most people don't even think about an auto loan until after they have gone to a dealership, taken a test drive and decided on a vehicle. Usually by that point, they are overcome by the excitement of finding a vehicle and anxious to just sign the papers and drive away. In many cases, these excited buyers have not even taken the time to really figure out if they can afford the car they are buying.

So when is the best time to think about an auto loan? Long before you decide whether you like the car better in red than in blue. Before you choose the sport model over the sedan. Even before you step foot in a dealership; you should know exactly how much you can afford to spend on your next vehicle and how you plan to pay for it.

Chances are you will need to secure an auto loan for your vehicle purchase. There are several advantages to having yourauto loan approved before you start shopping. Before purchasing a vehicle, you should look at your monthly budget and decide how much you can afford to spend. Keep in mind that the cost of owning a car involves more than making the monthly payment on your auto loan. Insurance, gasoline, maintenance, taxes and registration fees all need to become part of your budget.

The terms of your auto loan, including the interest rate and the duration of the loan, also directly impact your monthly payment. You can use a car loan calculator to see what changing these values will do to your payment. Just enter the interest rate, the length of the loan in months and the amount you are borrowing to see an estimate of the monthly payment. In general, a reduction in the interest rate or an increase in the duration of the auto loan will lower your monthly payment. Likewise, an increase in the interest rate or decrease in the length of the loan will give you a higher monthly payment. Once your budget is set and you know how much you can afford each month, you are ready to apply for anauto loan.

The auto loan process is easy at RoadLoans. You can apply online using our safe and easy, one page application. When your application is complete, you receive a loan decision – in many cases, instantly. Once approved, you can print your loan documents and take them to a RoadLoans Dealer. Our dealers can show you available vehicles, process your auto loanpaperwork and help you complete a sale. Before you know it you will be on your way in your new vehicle.