Will a Car Payment Affect my Credit?

You want to buy a car and you really need to buy with $0 down payment. What are your options? Owning a car is a necessity. Whether for daily commute to work or dropping kids to school or running errands, it is one thing you can count on needing in your daily life.  Well, unless you have the cash to buy a vehicle straight out, then you'll need to obtain a loan.  When cash is not available, how do you buy without a down payment? Read on to know how to buy a car without a down payment. $0 Down Payment There could be many reasons for you to opt for buying a car with zero down payment. You might be hesitating because you are not sure if you can buy a car with bad credit. Otherwise, you might not be able to afford it at the moment, but you seriously need it. Hence, it leaves you in a dilemma. As a matter of fact, putting no money down to buy a car is possible. But first, you need to consider a few important things. The most important thing to review is whether this is the right car to buy at that moment. Try to find alternative options. Consider Buying Used Cars Vehicles cost more when brand new.  If your income doesn't support servicing a new vehicle loan for the full amount, then you'll be required to make a down payment to ensure that the payment fits your budget.  The bank has to be sure that you can afford the car.  If it's not possible to come up with a down payment to get the loan amount to an affordable level, you may opt to find a lower priced car to match your budget.  Enter the used car. Used vehicles are less expensive and may make a better fit for your budget.  The loan amount is lower and thus you have a better chance for the bank to give you a auto loan approval with zero down. “The best way to determine if you like a car is to go on a test drive.” Trade In Your Old Car Another way to not have to come up with cash for a down payment is to trade in your old car. Banks will see this in the same way as a down payment if your car has equity.  Equity in a car means that it is worth more than what you owe on it.  If you have a "free and clear" trade, then that means there is no loan balance and thus it's the best scenario to be in. Trading in the car with equity will reduce the loan amount in the same way as a down payment and thus make the loan more affordable to you.  In some states like Kentucky, this will reduce your sales tax on the car deal as well. Know Your Credit Report Firstly, assess your current financial situation. Your financial situation is what your lender considers when approving your loan. In particular, your credit report and credit score become deciding factors in whether or not the loan is approved or if you need a down payment. Some auto lenders won’t let you buy a car with bad credit rating.  Or if you are approved, they may ask you to make a considerable down payment on the loan.  This shows commitment to the vehicle and in their eyes makes it less likely that you will let the vehicle get repoed. Conversely, good credit might get you a zero down loan with a nice low rate.  This will be especially helpful to you as the average monthly payment for a car in the US is $499.  The lower the rate the lower the payment. For instance, let us say that you have a good credit score, 680 and higher. This could even persuade the lender to charge low interest rates, with $0 down payment. Hence, know your credit report and try to improve your score. Paying all your bills in a timely manner and having a steady income help raise your score. Share the Responsibility As a final option, you could get a friend or family member to cosign.  A co-signer's credit score when stronger than yours, can get a loan officer to give you approval.  This is such because the co-signer adds income and additional stability to the loan application. When a person co-signs on a loan with you, they have the responsibility to make sure the loan payments are made, just like you do.  Late payments will hurt both parties credit scores and timely payments will help build up the credit. A co-signer also may be on the title to the vehicle and have rights to ownership of the car. “Adding a cosigner improves your loan terms.” Get a Low Interest Rate Newer cars have the lowest interest rate.  If you start shopping for too old of a vehicle, then the bank may reduce the loan term and raise the rate.  This is because older cars come with problems and when a car breaks sometimes people don't have the money to make the repairs.  Then they don't make the payments.  You can look for other options also, like trading in your existing, well maintained car. Instead of opting for a top-of-the-line car, choose a car that fits your budget. Furthermore, try to improve your credit report. Contact Dan Cummins and Buy Your Dream Car with a $0 Down Payment Today! Finding the right $0 down offer is easy with Dan Cummins. To find out which car meets your requirements, talk to our friendly staff. Leave a message or call us at 877-661-2805. Click here to apply for auto financing and get pre-approved in seconds. How to Get $0 Down When Buying a Car | Dan Cummins Chevrolet & Buick – Louisville, KY

A new car payment. It's not something you anticipated for the new year, but then your go-to car finally died. As you start to daydream about all the new cars you want to test-drive, a thought pops in your head: "What will my new car payment be?" If you want to know what your possible new payment might be, read on. Car payments are based on many factors, like interest rate and loan terms. What Goes Into My Car Payment? Before we get into what you could pay and where to calculate that, lets first go into the makeup of a car payment. As you might already know from previous cars, a typical payment is based on: Vehicle price Interest rate Loan term Down payment Trade-in value While all of this helps determine what you might pay each month, there are a few things to consider. It's not impossible to buy a car with bad credit. The first is your credit score. Unfortunately, the lower your credit score is the higher your interest rate will be.  That's why it's important to research your credit score to avoid buying a car on bad credit. We're not saying it's impossible or that you can't buy a car with bad credit. At Dan Cummins we have many specialists to help you. But if you want a high-end model with all the extras, it's best to know your credit score. Think Beyond Monthly Payment Another factor that affects your car payment is the loan term. This means the loan's duration. The longer your loan is, the smaller your monthly payment will be. This might seem like a great idea at first, but longer loan payments don't mean you're paying less. In fact, when you factor in interest, you could be paying more. For instance, let's say you're looking at a 2019 Chevrolet Malibu. The starting price is around 20K. Your interest rate is about 4.9% and you're putting $0 down. To keep the payments low you opt for a loan that's 84 months.  The car payment, interest and all, is $282 a month. Sounds great, right? Of course, it does! But by the end of the loan, your interest could total about $3,688. However, if you opt for a shorter loan term, say, 36 months, the total interest you pay drops to about $1,564. That's well under half of the first amount. "But wouldn't that make my car payments jump up?" Yes, it would, but the complete amount you pay for the Malibu would be less overall. Use services like Kelly Blue Book and Consumer Reports to see what others have paid. Ways to Lower Payments If you have your mind set on lower payments (we don't blame you), here are a few things you can do. First, try to put down as much as you can. The general rule of thumb is about 20% of the car's worth. If we went with the Malibu from before, the down payment would be about $5,000. "What if I have less than that?" Good question! While 20% is ideal, it's fine to come in with less than that. As long as your putting down something your car payments will be less than if you put down nothing. Second, see what others have paid for the model you want. How? By using Consumer Reports Car Buying Service. All you do is plug in the car you want, your zip code, and it will tell you what others in your area have paid. See what you could pay with Dan Cummins car payment calculator. You can also do the same with Kelly Blue Book. The bonus of using Kelly Blue Book is that you can customize your search beyond make and model. That way, you can see what others have paid for the exact model you want that has the exact extras you want. "Okay, this is great and all, but how can I really see what my monthly car payment could be? " We hear you. If you want to get a clear look at what your car payment might be, check out Dan Cummins Car Payment Calculator. All you have to do is plug in some information such as car price, interest rate, loan term, and down payment or trade-in. Press the calculate button and you'll get a pretty good idea of your car payment. Contact Dan Cummins to See What Your Car Payment is Today! See how you can afford your dream car with Dan Cummins. To find out which car meets your requirements, talk to our friendly staff. Leave a message or call us at 877-661-2805. Click here to apply for auto financing and get pre-approved in seconds. What Will My Car Payment Be? | Dan Cummins Auto Group – Louisville, KY

Purchasing a car is a big deal. Whether you are looking into your first automotive purchase ever, or have years of experience at dealerships - the entire process can be overwhelming. There are countless options, criteria, and other important things to consider, which is why it's important to be prepared. Before even stepping foot onto used car lots in Lexington, KY, you should have a pretty good idea of what you are in the market for. more New or Used? That is a Very Good Question Whenever you make the decision to purchase a new vehicle, you should consider your buying options. Opting for a new vehicle has it's definite advantages, but choosing to buy a used car can save you a ton of money right out of the gate. If budget isn't your main concern, then you may want to consider purchasing a new car. If you are more budget-conscious, then buying a quality pre-owned vehicle can be a great option. We recommend sitting down and writing out a list of pros and cons to each buying option, to help you decide which one is right for you. Those drivers who realize the savings potential of purchasing a used car, should be sure to follow important steps to help ensure that they are getting the highest quality, well-maintained vehicle. Whichever direction you choose to go with, it is important to be aware of all of the costs associated with owning a car, truck, or SUV. Consider More Than the Sticker Price As it is well known, and as we have previously stated, buying a quality used vehicle can be a great option that will help you save money at the point of purchase. This initial savings can help out a great deal over the time that you own your car. Let's face it - owning a vehicle isn't free. There are a lot of costs associated with owning and maintaining a vehicle, that far exceed the amount you pay when you purchase your car. It's important to work these costs into your budget, and even more important to do a little research on the vehicle you plan to buy, before signing on the dotted line. Consider each and every factor about your potential new ride, because it can mean the difference between enjoying your new car, or regretting your purchase. A car is a BIG purchase, likely one of the largest of your life, so having any regret about it, is something no one wants to deal with. Top 3 Vehicle Costs - After You Purchase Your Car As most people are aware, the cost of a vehicle far exceeds the amount you pay on the day of purchase. From buying gas, to regularly scheduled maintenance, and more - owning a vehicle is a big deal, and can be an expensive, especially if you don't do the proper research. As most people are also aware, owning a vehicle is most often, a necessity. With the unavoidable cost of owning a car, coupled with the importance of vehicle ownership - it's important to know what to look for before you sign on the dotted line. Thankfully, if you do the proper due diligence, you will be able to purchase the right vehicle without killing your monthly budget. Let's take a look at three different areas that, if you don't do your research, can end up costing you in the long run. Fuel Costs: With today's cultural focus on gasoline prices, and EPA-ratings, this is one area that is least likely to go unnoticed. Despite the spotlight on this particular area, it is still an important one to address. Gas prices are constantly changing. This week, they may be under $2.00 per gallon, while next week they may teeter closer to $4.00 per gallon. It's important to take into consideration how you want your vehicle to perform when looking at this category. If you need a vehicle with a powerful engine that can perform essential tasks, then you will end up spending more money when filling up at the pump. If you only need your vehicle to get you from home to work, then a car that has a smaller engine will perform well, without requiring you to spend your life savings at the local gas station. No matter which end of the spectrum you fall on, be sure to buy a vehicle that is equipped with the right engine for your lifestyle. Maintenance Costs: Buying a used car, truck, or SUV can save you a TON of money up front, but it is important to make sure that the vehicle you are buying is in good working order. Once you know that your used car has been properly maintained, check out the specifics on the make and model you are considering, when it comes to maintenance costs. There are a lot of great resources available to car buyers, to help ensure that the vehicle they are buying, won't end up costing them more than the average maintenance costs. It is also important to consider that when you purchase a foreign-made vehicle, that regularly scheduled maintenance and parts may be harder to come by - and more expensive than cars made here in the United States. Insurance Costs: Car insurance is not only important to have for protection in the event of a crash, it is also illegal not to have. This is another mandatory cost that goes along with vehicle ownership. If you are considering a particular make and model of vehicle, you can call insurance companies to get quotes for what it will cost to drive. Some vehicles are considered safer than others, and will actually save you money with insurance companies. Likewise, vehicles that are deemed to be unsafe, will actually end up costing you more to stay legal. A little bit of research goes a long way with this particular cost, and your insurance agent will be able to quote you over the phone, prior to you purchasing your vehicle. If a vehicle has a cheap sticker price, but is deemed "unsafe" by your insurance company, it can end up costing you a lot more in the long run. Making a Final Decision Buying a new-to-you car can be a lot of fun. Finding the perfect make and model, and the perfect color to match your personality, can bring a lot of joy to your everyday tasks. While it is important to check off your "Must-haves" when you head to the used car lot, it is equally as important to make sure that your new car won't cost you thousands of dollars down the road. A little bit of research can go a long way with your new car purchase. If you take fuel costs, maintenance costs, and insurance costs into consideration when you buy your new vehicle, you can use the money you saved for endless adventures in your new car. A vehicle that has a higher purchase price, but low fuel economy, can end up saving you more money in the long run. Just remember that the opposite is also true. If a vehicle has a lower purchase price, you may end up spending a lot more money in fuel, maintenance, and insurance during your years of ownership.