When it comes to the feasibility of an important purchase, financial planning often plays a crucial role. When it comes to purchasing a vehicle, it is no different. Before you decide you can buy, you need to make some calculations involving your income and expenses. After you have determined the amount you can spend on a monthly car payment, you’ll have a better picture of the affordability of your purchase. From there, you can obtain an auto loan. Missoula MT residents seeking to purchase a car can benefit significantly from having a loan that works within short-term and long-term budget.

Your Credit Score
One feature of those monthly payments you need to consider is the interest rate. Your credit score will have a significant effect on the interest rate you can obtain. If your credit history is poor, you may have a difficult time obtaining an auto loan. However, at times even those with below average credit can obtain financing, although at a higher interest rate. In any event, it’s important to know your credit score before you move forward to obtain a loan.

Benefit of a Down Payment
One way to significantly reduce your monthly payment is to pay a healthy percentage of the cost of the vehicle with a down payment –10 to 20% if possible. If you have a car you’re able to trade in or sell, you may be able to use some or all of those proceeds for the down payment.

Obtaining an Auto Loan
Before you apply for a loan for your vehicle purchase, it’s important to understand your financial situation. You may be able to obtain a loan that is available for first time car buyers. Other special programs may be offered for college students purchasing a vehicle. Be sure to check with your bank or credit union to find out what’s available.

As you review your options in terms of lenders, be sure to evaluate available interest rates, and loan terms, including any estimated monthly payments. With the right car loan, you can obtain the vehicle you need without breaking your monthly budget.