Out of all the generations, it seems like the current generation is the most likely to buy a new car. Some people might say that this is because they have more money than other generations and can afford it. However, there could be many different reasons why millennials in particular love their new cars.
Not everyone has the money to buy a new car outright, and there are many ways to make it more affordable. If you need to purchase a car, and you don’t have the cash necessary to purchase the car, you are going to need to get financing. In order to get the best financing offer, you need to know what you are doing when you go in and get financing.
New Cars Have Newest Technology
Many millennials enjoy being able to have the latest technology at their fingertips. Having a new car means that it will almost certainly include some of these high-tech features, which are often more affordable when you buy them with your vehicle than if you purchased them separately on your own. For example, new Chevrolet cars now come standard with Apple CarPlay and Android Auto compatibility in most models. This allows users to seamlessly connect their smartphones to their vehicles to make calls or play music without having to touch their phones while they drive – making driving even safer for busy millennials.
People Like to Show off Their Social Status
Millennials are the flashiest generation yet, and one of the ways they like to do this is by driving flashy cars. It’s no secret how much millennials love posting selfies on Instagram or Snapchat. Having an excellent vehicle gives millennials more confidence since studies show that those who drive more excellent cars have a sense of entitlement that makes them feel more important than those who do not. This is probably another reason why many millennials love driving new cars – because it gives them an inner boost and bragging rights with their friends and family.
Millennials Have a Lot of Responsibilities
Life can be very busy. Between school and work, many people barely feel like they even have the time to breathe. One thing that helps make their lives easier is a vehicle with outstanding capabilities for hauling anything from groceries to furniture or other large items. There are many responsibilities that you have to take upon yourself as you grow older. There are always things keeping you busy, sometimes with only enough time to sleep before the next day.
While it can be tempting to buy an older car instead since you’ll save money on repairs, buying such vehicles means you will either end up paying more in insurance premiums or putting yourself at risk if your car breaks down unexpectedly. However, newer cars typically come standard with better safety features than older models, making driving safer overall. If you take the right steps to getting your car financed, it doesn’t need to be a burden.
Start With Your Credit Score
Before you try to work with a bank or dealerships to get a car loan, you need to know your credit score. Knowing your own credit score, as well as the information on your credit report, is powerful. When you know your score, you have a better idea of what type of loan you can expect to get based on your loan score. You can also talk intelligently about the actions on your credit report.
For example, if you missed a few payments on a loan three years ago, you can tell the banker that you missed those three payments because you were out of a job. You can then explain how you now have a job and have built up an emergency fund of six months so that even if you lose your job again, you will still be able to make your loan payments.
Knowing what is on your credit report will allow you to talk intelligently about what is on your credit report. This can help you secure better loan terms.
Be Prepared to Get Multiple Quotes
Knowledge is power. Don’t just get one quote from one lender or dealership. Get quotes from at least three different places. When you get multiple quotes close together it will not hurt your credit score. Credit companies actually want you to get multiple quotes close together, and do not penalize you for doing this.
Getting multiple quotes will allow you to compare the terms you qualify for and will give you leverage to negotiate terms. For example, if one lender is willing to give you a credit interest rate but is not willing to give you the terms you want, you can leverage another lender against them to get them to give you more favorable terms.
Have Money Saved Up
Finally, you should make an effort to have some money saved up before car shopping. Being able to put down a substantial amount as a down payment will help you secure a better loan. The lenders will see that you are financially responsible and that you were capable of saving up for a twenty percent or greater down payment, they are more likely to want to provide you with a loan for the rest of it. Also, the less money you take out for a loan, the less interest you will pay over the lifetime of the loan.
If you are ready to get an automobile and need to take out a car loan, make sure you know your credit score and the information on your report so that you can own it when you meet with a lender. Be ready to get multiple quotes and save up money so you can put down a substantial down payment.