Only 1% of people can pay the full price of their vehicle in a single transaction, while most mortals have to rely on a car loan to be able to finance it through monthly payments for a certain number of years. The right type of financing can provide you with the car you need, as well as monthly payments that do not harm your wallet.

The good news is that car financing has evolved to a point where even those with a bad credit history or no record at all, can qualify for funding to buy a car.

Evaluate your finances

Before you even think about applying for a loan, you need to take into account how your investments are and identify how much you can allocate toward payments for a car purchase and other car ownership expenses, such as insurance, maintenance, repairs, and gas. Lenders will take you more seriously if you can make a substantial down payment and keep monthly payments well below 33.3% of your gross monthly income. So the idea is that you save a little to be able to give a good advance.