What Your Car Loan Agreement Could Entail
If you save up a considerable amount of cash and make a big down payment, then you won’t have to take out as big of a loan and could be more likely to get approved. You could set aside a certain amount of money every month from your unemployment checks and other sources of income to save.
Consider buying a used car instead of a new one since it will be cheaper and more attainable. You could always look at the Kelley Blue Book to see prices of new and used vehicles, and when you go into the dealer, you can show them the Kelley Blue Book value to negotiate. For example, if they’re trying to sell you a used car that’s $3,000 above the Kelley Blue Book value, you could play hardball and tell them you won’t purchase it unless they lower the price.
Whether you’ve been furloughed due to the COVID-19 pandemic or just lost your job, these strategies can help you in your attempt to get a car loan. However, you’ll need to keep in mind that the terms of your car loan could potentially be less than desirable.
Since you’re unemployed, your lender may consider you a high-risk borrower, and your car loan agreement might not be ideal. For instance, the lender may want you to pay back your entire loan in a shorter amount of time, require you to set up automatic payments, give you a lower loan amount than you need or charge a higher interest rate and origination fees. (mehr …)