Buying a car is a major financial decision that should fit into your overall budget. If you are thinking of purchasing an automobile with the help of a payday loan advance, this could be a huge mistake.
You should only consider buying a car once you have the proper financial standing, a strong credit score and sufficient savings.
Car Loan Credit Standards Loosening
If you want to utilize an auto loan to buy a much-needed car, a recent survey conducted by Experian Automotive revealed that lending standards in this area are starting to loosen.
The average FICO credit score required for a new car loan fell to 760 during the first quarter. However, if the purchase of a new car is too expensive, you should consider buying a used vehicle. If this is the direction you are headed, you’re in luck, because the average credit score required for a used vehicle was just 653.
Stay a Step Ahead of Used Car Scammers
If you are in the market for a used vehicle, there are a few things you should know. Purchasing a used car isn’t always as safe as buying new, and while most transactions are legitimate, you have a higher chance of getting scammed. In fact, according to the Internet Crime Complaint Center, used car sales scams increased 25 percent in 2011.
Do Your Homework
To avoid any missteps while buying a used car, Bankrate.com recommends doing some research on a vehicle before you make any decisions. If the price of a vehicle seems too good to be true, it could be a scam. To determine how much a car should cost, there are a number of internet resources to refer to.
Report It To Authorities
Exercise caution when researching a potential sale, as it could be a scam or the car might have some serious issues, such as water damage or engine problems. To make sure someone else doesn’t get stuck with the problem, make sure to report questionable sellers to local authorities.