The DOs and DON’Ts of Car Financing

Maserati GranCabrio
Car Financing for a Maserati!

Bad Credit Score Doesn’t Have to Stand Between You and Your Dream Car 

There is no better feeling than having a hot new car, ready to ride in your very own garage. However, with car prices still high, and the economy still in bad shape achieving the goal of new car ownership is not very wallet-friendly. On the other hand, when you set your mind on your new must-have vehicle, you don’t have to stop pursuing it just because of the price tag or your credit score.  With some knowledge about car financing, you can have your car on your driveway while staying well within your financial limits.

DOs and DON’Ts of Car Financing

Car financing is the art of purchasing a car by borrowing money from banks or other sources. It is the ultimate solution that demolishes the distance between your garage and your new car. It grants you the purchasing capacity even in a very tight budget

To gain the freedom to buy the car of your desire, there are several DO’s and DON’Ts that you have to keep strictly in mind before and throughout the whole process of car financing as they will enable you to get the best car finance rates even with a with a bad credit history.

  • Do Research the Amount of Money to be BorrowedBefore applying for car finance, do some homework and determine the exact amount that you will require. It will enable you to determine the additional costs that the dealer is imposing in the form of hidden interest rates and additional costs at the time of car financing.
  • Do Pre-determination of the Loan Repayment Schedule Make a draft schedule for repayment, be precise about the schedule and the total time period of the loan. Keeping in mind your desired repayment time period will play a significant role in selecting the best plan during the car financing process.
  • Do Know Your Budget and Stay Within its Limits Always be within your budget limits, exceeding the budget limit will throw a curse of bad credit score on you. For avoiding this tremendous curse, pre-determine the budget precisely and choose the car within its limits.
  • Do Find Out Your Credit ScoreThere are numerous credit score calculators online; use them and find out your credit score. Your credit score history will be researched thoroughly during the whole process, and it is very good to know the facts upfront.
  • Do some simulations and prepare possible scenarios It is not as technical as it sounds. All you need to do is to jump on the car finance calculator and input the amounts related to your car loan, such as car’s price, desired interest rates, and down payment, and find out the simulated results. It will give you a taste of the general loan amount that you will have to pay per month for the specified car.

The above DOs will greatly broaden your with regard to car finance, but in order to make your purchase as smooth as possible, there are DON’Ts to be kept in mind, as well.

  • Don’t Disclose Your Monthly Payment Capacity The dealer would try every sugar-coated tactic to make you disclose your monthly payment capacity, but at this point you need to be focused on the total amount of the loan and then afterwards determining the monthly payment schedule. If you somehow disclose your monthly payment capacity, there is a greater possibility that you will lose your chance of getting a lower purchase price at lower interest rates.
  • Don’t Let the Dealer Determine Your Credit ScoreBefore approaching the dealer, you should know your credit score (as mentioned earlier in the “DOs” section of this sheet). If you don’t know your credit score, the dealer can tell you almost anything, and you would have to believe them, and proceed with the loan according to the credit score provided.
  • Don’t Go for the Most Expensive CarNever exceed the limits of your budget, always remain within it. However, if you choose to do so, it will only result in rolling the negative equity forward to your upcoming deals or it might even downgrade your credit score. Negative equity means the difference between the amount you own to the borrower for the car and the car’s total price.
  • Don’t Accept to Finance Additional Options for Your CarYou generally don't need the add-ons, such as extended warranties, fabric protection, rust protection.  Most new cars come with these things nowadays anyway. Simply refuse to get or finance the add-ons, when the dealer offers to add them to your existing borrowing amount; you will save yourself a significant amount of money.

Along with all the above mentioned DOs and DON’TS, there is a common fear related to bad credit score that exists among many borrowers. However, there is no need for that fear to get between you and your dream car, because you can get car loans with a bad credit history from many sources easily. All you need to do is to stay calm during the complete process of car financing and thoroughly follow the tips provided. As a result, you can drive your dream car into the New Year with the best car finance rates and without the hazards of car financing.

2013 Ford Explorer Sports – First Test Drive Impressions

What can you say about the new 2013 Ford Explorer?  In a nutshell it is the new redesigned Ford Explorer and is the synthesis of an American SUV with European styling and handling.  The interior was nice and well appointed which made me feel I was in a luxury Lincoln.  Makes you wonder what Ford will do with the Lincoln version of it.  The model I had was a beautiful black and pretty brown leather seats.  The 2013 Explorer Sport has some nice features but the re-engineering is what won me.

Ford's head engineer on the 2013 Ford Explorer emphasized that have improved to make a stiffer body with reinforcements in key structural areas.  Under the two fronts seats where they attached to the floor, there is a bar that stiffens the body, right across the transmission tunnel.  There is another stiffening bar behind the front shocks that is also behind the engine.

What was interesting to hear is that Ford Explorer weight split is 60/40 vehicle but the drivetrain can go into pure 50/50.  There is a convenient knob on the central console where you can select Desert, Forest and Ice mode, each giving you more or less torque if different driving conditions.

Although you sit high, as with any other SUV, it felt responsive and tight… at least tighter than any other SUV I've driven.  I would imagine the Porsche and Maserati could easily out handle the 2013 Ford Explorer, but not its price.  It's a SUV and has limits but more than a few BMWs on twisty roads were surprised by the powerful SUV keeping pace with their German vehicles.  Worse case handling scenario, the rear has a hard time understanding what the front is doing but obliges willingly and follows the curve.

Purist will hate the paddle shifting mounted on the steering wheel instead of the column, but I suspect 90% of its clientele won't know or care what paddle shifters are or even bother to use them.  I found myself a few times coming out of a curve wanting to shift but not being able to figure out which paddle was up or down.  One very nice touch are the good looking 20-inch wheels with “Sport” engraved in them.  The brakes have been generously upgraded for the Sport version for the extra power.

All in all, this is yet another Ford achievement as the company positions itself to compete with the more power and performance oriented SUV market, but at an affordable price.  I found the SUV easy to drive in traffic and even fun to bounce around canyon roads.  The engine comes alive at over 3,000 but not once will it intrude inside your plush felt cabin.  The only thing you will hate on the road if you own a Sport version is to see an older Explorer in front of you heavily braking at every curves.  This SUV is meant to go fast, cruise around town and everything in between.