How to Finance an Auto

Seven out of 10 new cars and trucks are financed, and you can also finance a used car. But to do it right you must be prepared before and after you reach the car lot! Before you begin looking for a new car, you can get your loan approved before you ever hit the showroom. Getting your financing set up ahead of time will offer you the lowest rates-and you won't be confused by all the dealer incentives that end up costing you more money in the long run.

One other choice when buying a new car is a home equity loan. You'll get a good interest rate and the interest rate and payments are tax-deductible. If financing is a stretch for you, your family can also co-sign a loan.

When buying a car, here are some good tips to keep in mind:

Know your numbers
Not all the numbers in your deal are set in stone. Be sure every step of the way that you know just how much you are paying, when, how and what for.

Know your contract
Read and be sure you understand every word of every document you sign and initial. Get copies of everything you sign so that you can reference the sale at any point in the future.

Be wary of car advertising
Don't immediately trust advertising for cars that promises special offers for people with bad credit, no credit, or for senior citizens. Many times, these dealers are trying to sell you a vehicle with a large down payment and high interest rate. You will end up owing more than the car is worth. Again, having financing set up from Heritage before you shop can help you avoid these situations.

The more prepared you are coming into a dealership, the less likely you are to be taken advantage of. Heritage can help you determine how much you can afford, and you can take that knowledge with you to the dealership and get the vehicle of your dreams.