Buyers new to the Ford finance process may be confused about what exactly must be done in order to secure the vehicle of their dreams, but knowing what not to do can help immensely. To show readers what we mean by that, here are a few things that you should avoid when financing a new Ford vehicle.
Going Over Budget
In many different situations, it’s never a good idea to bite off more than you can chew. This same adage certainly applies to financing a vehicle, as buyers can find themselves underwater very fast.
A good rule of thumb for planning a budget is the “20/4/10” rule. This rule says that drivers should put down a 20 percent down payment on a four-year loan, during which your monthly vehicle bills add up to no more than 10 percent of your monthly income.
Not Getting Pre-Approved
Obtaining pre-approval for your next car loan gives you all the power in the financing process. Not only can it make the selection process more enjoyable, but it can also let salespeople know you mean business. Pre-approval also allows buyers to shop around for a lender that provides them with the best loan.
Not Refinancing a Bad Loan
Car loans aren’t set in stone. There is a way for drivers to renegotiate the terms for more agreeable ones. If you find yourself in a bad situation with your vehicle loan, refinancing can help ease the burden.
Now that you know what not to do when financing, hopefully the path towards your next ride has become clearer. If any confusion still persists, make sure to have any lingering questions answered by the Helfman Ford finance department before applying for financing.
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