So you found a Ford Tempo that you want to purchase? Great. Now how will you pay for it? We're here to help.
The last new Ford Tempo came off the assembly line in 1994. So if you can still find a new one, buy it - it's probably worth a lot of money. But most of us will be buying a used Tempo and paying used car loan prices. These are as a rule much more expensive than new car loans, some say unfairly more expensive. But that is the way it is.
You can obtain some new car loans for 0%, but you will probably be paying between 5 and 10% on a used car loan. Exactly what you will be paying depends a lot on your credit rating. So to improve the rate you will be paying, improve your credit score. How? Here are some tips.
Your credit score is probably the key factor that a loan officer will consider when reviewing your application. Before applying for a loan, make sure your credit report information is free of problems and errors, and that it is up-to-date. If you have any outstanding bills or debts, pay them off before you apply for your loan. This will improve your credit score. Clear up errors on your credit report, such as debts that are not yours or any records of late payments that are erroneous. Removing them and getting them off your record will boost your score.
Other important areas a loan officer will consider are: how long you have been employed at your job or business, your employment record, how much you earn, and if whether you rent or own a home.
This best way to buy a car, in anyone's opinion, is to pay cash. Most salesman and saleswomen will reduce the price of your Tempo for a cash deal. You will get a better price, and you won't have to pay interest or make any payments. This is an obvious win-win situation all the way around. The downside to paying cash it is that you have to save up the money, which is difficult for some people.
Let's talk a little about leasing (although leasing is not an option except for new vehicles). Leasing is advantageous if you have a business because if you operate the car for business purposes, you can write off the payments every month as part of your business expenses. On the other hand, if you use your used Tempo for business, you can only write off the interest - technically part of it. How much interest depends on how you have your business set up. If you are ever faced with a leasing choice, it may sound good but you will end up with nothing because you will not own the car, although you can most likely buy it at the end of the lease. Remember too that at the end of the lease you will be in need of a vehicle. So your choice is: 1) either purchase the car or 2) sign up for another lease. Many people choose to sign up for another lease and in doing so end up paying more for transportation than is necessary. The advantage of leasing is that you are always driving a fairly new car.
Before you start to shop for a loan, find out about how much you need to borrow and for how long. Be aware of the exact year, make and model of the Tempo, and the type of transmission and the engine size.
Shop for a loan at credit unions and banks. Determine the lender's reputation. Compare services and interest rates. Click on one of the great finance companies below for a fast, accurate, and confidential quote.
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