6 Important Car Financing Tips for Millennials


car financing tipsBuying or financing a car is not the easiest thing in the world, and a lot of millennials are slowly realizing this now. You are now done with school and you have finally landed your first job, and now, the pressure is on for finding the best wheels in the market. Having your own car these days is becoming more of a necessity rather than a luxury, as commuting is getting harder and harder every day.

But how do you even start? You do not know a thing about bad credit car financing or even financing alone, let alone the responsibilities of owning a car. Not to worry though, as we have collected seven tips from the experts that are perfect for millennials trying to get their first car.

Start by Setting a Budget

Nothing feels better than receiving your first pay as a professional. You might feel excited and start thinking about how you are going to spend it, but you have to stop and rethink. Set your priorities, and make sure to pay your bills and your debts first. Put luxury aside and think of that later on, and put your necessities on the list first. Be realistic when it comes to buying a house or getting a car finance, and make sure that you can afford it. You do not want to be caught up in a lot of debts or arrears after a few years.

Make Good Use of Your Smartphone

Since millennials are known for being addicted to their smartphones, you might as well get a kick out of it. Technology today makes our lives so much easier, and applying for a car finance is no different. Instead of wasting your energy to go to a physical office just to get rejected, you can instead check the company’s website for the price that you have to pay. Most car finance websites usually have a pre-approval form, and filling it out will only take at least 3 minutes of your time. You can even call or chat with a customer service representative so you can decide which one you will get.

Test Drive Multiple Cars

Never settle for the first and only one, unless you are 100 percent sure that it is what you want. Schedule multiple test-drive appointments and make sure to attend each one. According to research, millennials sometimes skip the test drive just because they get annoyed with pushy sales people. Test driving your car is important, as you want to get every bang for your buck. You want to get a quality unit and one that you would totally be comfortable driving.

There Will be Hidden Costs

You have to be aware of the hidden costs, as this can make your car finance much more costly. Remember that aside from paying the weekly or other periodic repayments, your bill will also include additional costs such as insurance, servicing costs, and more. Though this may be the case, there are some car financing companies that already include these things to the repayments. Make sure to ask the sales representative before moving on to car finance.

Get Preapproved

As we have mentioned early, it would not take you more than 10 minutes to get pre-approved for a car finance. It is incredibly fast, easy, and hassle-free. Getting a pre-approval will set a certain baseline for you, so you know the interest rate that you truly deserve. By getting pre-approved, you also get the chance to decide if the costs are within your budget. All you have to do is fill up a form, talk to an agent, and you are good to go.

Look for the Best One

Having no credit record is actually as bad as having bad credit, but you do not have to despair. Since you are new to the scene and you do not have a credible credit report yet, you have to take the time and look for the best car financing company that will be willing to take you in. With a stable job and enough income, you can definitely find one that will fit your needs.

Being a newbie to the professional scene can be tough, but you surely can get through it. Trust us, that feeling that you get once you drive off in your first car will be all well worth it!

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