4 Alternatives To Taking Out A Title Loan
Alternative Lending Options
In many parts of the country Americans need a car to drive to work, get to school and attend personal engagements and appointments. Unfortunately, most Americans do not budget for an upcoming car purchase, and end up taking out large personal loans at exorbitant interest rates. Pretty soon the “low monthly payments” that the dealer promised are strangling your family and you can’t figure out how to get yourself out of debt. Fortunately, buying a car doesn’t have to be a debt accruing process . Here are the 4 ways I saved money and bought a car without accumulating any personal debt.
Do you homework and research different installment lenders: The moment you drive a new car off the lot, it’s used. You save yourself a lot of debt and a huge depreciation in value when you buy used. Consult Consumer Reports and Kelly Blue Book to find out what makes and models are the best value for your money. Most personal finance lenders will allow you to apply with multiple companies at any given time. If you’re purchasing from a private seller have a mechanic you trust take a look at the car before you buy it. He/she will be able to tell you if the car has any major mechanical problems that may cost you a lot of money in the near future. I purchased my Honda Civic from a dealer and was thrilled with the car I got for my money. Same is true with online lenders. At Premier Title Loans, we have a longstanding process that walks our applicants through the application from start to finish.
Hold off on buying that big ticket item: Don’t wait until your current car is dead to start thinking about getting a newer model. Your current car will eventually stop working and you’ll probably end up buying something you can’t afford if you don’t save for a new car in advance. I started saving for my new car long before my old car died. I drove my Chevy Cavalier until it overheated and left me stranded on the side of the highway. Thankfully when the title loan payment was due, I didn’t have to panic or run out to finance a new car. I had saved for a year in advance and was able to payoff past due payday loans. I already had several thousand dollars set aside to buy a replacement. Talk about peace of mind.
Make a Budget and Stick to it: If you only have $5,000 to buy a car, don’t browse new car lots or look at online advertisements showing cars retailing for $10,000. You wouldn’t look at a $1,000,000 dollar home when you have a $250,000 budget, would you? I searched Craigslist and my local classifieds and only made appointments to see cars that I knew were within my budget. When I went to the dealer, I knew exactly what I wanted and what I was willing to spend. I negotiated firmly with the salesman and let him know I’d be willing to pay in cash, same day, to get the price I wanted. Most companies that offer online title loans will work with you and come down to the payment you can afford.
Be Flexible About Day To Day Expenses: A car that’s within your budget may or may not have all the “bells and whistles” that newer models have. One thing to consider when looking for online title loans is the rate a car title loan lender is looking to charge. Be flexible about exterior colors, interior fabric, and special features. All these extras are only going to increase the interest charges on your loan. Often, salesmen and women are more willing to make a deal with you if you’re willing to take a less desirable car off their hands. This doesn’t mean you shouldn’t be choosy. But rather you should scour the lot to see if there is an Accord with 40,000 miles. My Civic didn’t have automatic door locks or windows. But the car was safe, the gas mileage was great, and the price was right.
Vehicles are a huge monthly expense and a tremendous emotional and financial burden if you don’t do your homework. Fortunately, i saved my money and was flexible with the add-ons and features. I was able to buy a great car on a limited budget, without going into debt .