Find Affordable Cars in West Virginia
Find Affordable Cars in West Virginia At the time of writing this article, interest rates on car loans are above the 6% on average. That’s
At the time of writing this article, interest rates on car loans are above the 6% on average. That’s a noticeable rise from around 5% in 2019. Although prices have come down from their historic highs, shoppers are still looking to find affordable cars in West Virginia. With interest rates high and the economy sending mixed signals to corporations and financial companies, the buyer needs all the help they can get.
When buying an affordable car in West Virginia, you need to gather some key information before you walk onto the car lot. Specifically, you need to know your monthly payment budget, down payment budget, credit score, and the amount of time you plan to take to pay off the car.
Once you know the information below, you can plug them into our handy Car Affordability Calculator. Give it a try!
Affordability means different things to different people. One person might want to snag a deal by paying for a car in cash. Another person wants to pay off a car over the course of 60 months with the lowest monthly payment possible. Which kind of buyer are you?
When considering your answer, look at how much money you have saved and how much money you make every year. An affordable car is a car that isn’t going to drain your savings and isn’t going to exceed your monthly income (accounting for house, insurance, and additional payments).
Most car financers require a down payment in order to get the best loan deals. Walking into a car dealership without any source of a down payment is going to lead to a high interest rate. Before you buy an affordable car in West Virginia, you’ll want to set aside some expendable cash you can use for a down payment.
A good credit score will give you better interest rates when it comes time to get a loan for an affordable car. Right now, an excellent credit score of 781 and above will land you an interest rate of around 2.5%. A low credit score below 500 will mean you’ll be paying above 10% in interest.
Sometimes timing is the key to buying an affordable car in West Virginia. If you have low credit, spend a few months building it back up. Refinance some bad debt. Save money and put it toward credit card payments. There are companies out there that can help you make quick progress on your credit score. Afterward, you’ll be able to get a good interest rate on your car once you’re ready to buy.
Weigh your car payments against your upcoming financial needs. Some people might plan to purchase a new home in five years. In that case, it might be prudent to pay off the car loan before applying for a new home loan. And in general, the shorter the loan, the less you will pay in interest over the long term. The length of your car loan will depend on your life stage and how quickly you can afford to pay it off.
Now it’s time to plug your numbers into our Car Affordability Calculator. Based on your inputs, you’ll be able to see your total budget (down payment plus monthly payment), total interest paid, and the final total after the car is paid off.
Don’t end up purchasing a car you can’t afford. Make a savvy decision using our tool.
You know what makes a car unaffordable? Getting in an accident without proper insurance.
United Security Agency is ready to help you protect your car with auto insurance and recreational vehicle insurance. We understand the need for different types of auto insurance coverage, and we understand you might not know all your car insurance or recreational vehicle insurance coverage needs.
Shop a wide range of policies through our friendly, helpful brokers. Click here to learn more about our auto insurance offers in West Virginia.
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Find Affordable Cars in West Virginia At the time of writing this article, interest rates on car loans are above the 6% on average. That’s