Car loans and leases can get complicated, particularly when we are in panic mode with a lease ending or an older car needing a replacement. The Car Coach is here to offer some tips on when to finance a new, or used, car. Including what to do when you’re in trouble. Are no-money-down car loans, a good deal? What about those attractive 0% auto finance options.
And when should you consider trading in your car rather than repairing it?
We will tell you this and more.
Many Americans are struggling to keep up with car payments during the pandemic.
If you are struggling to pay your car payments, the worst thing you can do is ignore them and try again next month. If your budget won’t cover your lease or monthly payment, the first thing you should do is call your lending company. They will make arrangements to help you. This is especially true because of the pandemics.
The worst thing to confront is the repossession of your auto. This will impact your credit, making it more difficult to secure a future loan or lease. It will leave you without a ride, which impacts your ability to get to, or find, work.
Despite lockdowns, Americans are still shopping for cars out of need and necessity.
If you are at the end of your lease, you are not alone.
Recently, over one million vehicles were returned following the end of their lease terms. off lease over the last three months. Leasing companies can extend your lease for a few months, but be careful as you may own your vehicle outside the warranty. Any additional repairs would be out of pocket.
If you are seeking a new lease or purchase, the deals are there and new cars are being produced as we speak. There are no-money-down car loans and extended first payments. These can be tricky! Know that there are huge deals, you will pay the full amount but it will be over a longer time period, higher payments, and most are far from a great deal.
I suggest putting down a few thousand dollars if you can. Go for the low-interest rates and add in all the incentives you can get. Don’t forget the Loyalty and Conquest discounts, if you don’t ask for them you will not get them and the dealer earns the extra money.
Another factor to not consider is refinancing your current loan.
With the low-interest rates some people have thought this is a smart idea. Sadly, you will most likely find your self “upside-down”. This means you owe more on the loan than the new (or used) vehicle is worth. This is not a smart financial decision. Make your payments on time and never refinance the unpaid portion into your next vehicle.
You will never get ahead with this strategy.
The Car Coach also says never put more money into a vehicle than it is worth! Consider trading in your car and use the money you were going to use to repair the automobile to purchase a safer one. (The Car Coach: Taking advantage of new – used deals with car buying tips)
Another tip, new safer cars will lower your insurance rates and save you even more money.
There are more tips in the video. If you can’t find a good deal – let us know and we can help!
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For more auto insights, check out: www.laurenfix.com.