Vehicle sales up in June, need for auto financing increasing
Posted on Tuesday, August 20, 2013 at 12:01:45 PM
Throughout the summer, more people are buying vehicles at an increasing rate. With the greater numbers of consumers looking to buy, the need for automotive financing is rising as well. Sales in the month of June increased nearly 8 percent, according to a report from TrueCar.
Home Loan Investment Bank's Christine Dikdan recently offered some advice about shopping for the perfect new ride, and finding the best solutions to afford any type of vehicle. Prior to starting, Dikdan advised taking a look at personal finances before committing to a purchase.
"I would recommend potential car buyers- new or used - sit down, make a list of monthly usable income and subtract any monthly payments," said Dikdan. "It is very important that the list is complete - with current and future (if known) monthly financial obligations - and also allows for some 'rainy day' expenditures."
She also stressed the importance of planning in order to get the most out of automotive financing.
"Keep in mind that when purchasing a vehicle there will be repair, maintenance costs and insurance premiums associated with the purchase," explained Dikdan. "Again - the more complete and accurate the list is - the more accurate your budget to purchase a vehicle will be. Then comes the fun part. Go shopping for a vehicle! You can compare vehicle pricing between dealers and the finance company rates online, or by phone, to get a good idea of what the total cost will be."
Buyers should never move forward with a purchase without being sure that the finances work for them. Jumping in without first going over the numbers might lead to missed payments in the future.
"When talking cost there is the monthly payment on the bank loan as well as the total of payments - which will be the final cost if the loan goes full term - to take into consideration," Dikdan added. "I would never recommend purchasing a vehicle if there is any doubt about whether you can afford it or not. If you have to ask the question - 'will I be able to afford this?' - after a thorough analysis of income and expenditures, then the answer is no."
In addition to automotive financing, buyers should also consider choosing the best vehicle for their lifestyle. For this step, personal preference makes a difference. Dikdan explained that the two-door Jeep Wrangler fits her personality, but that choice will change depending on the person.
"Vehicle dependability is not generally associated with lifestyle, but is very also important," she added. "Matching lifestyle to your vehicle is a very personal thing. Can it hold a bike rack? Kayak? Does it have a hitch and can it tow? Is there enough room for the family and friends caravan - and their luggage on the roof rack?"
Affordable financing options from HLIB might be able to help a number of buyers pick the perfect vehicle, even though the list of choices is quite long.
"Fortunately there are so many types of vehicles out there to choose from," said Dikdan. "I have even seen some registered Dune Buggies on the road this year. I'm not saying it's practical, but it sure sounds fun!"