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Save Money before Buying a Car

DebtMost American households do not effectively save money which leaves them susceptible to multiple financial problems in the future. Not having any savings or emergency funds can be a problem in a several situations. Think about attempting to buy a car: it is very difficult to buy a car without having cash on hand. Here’s why you need to save before buying a vehicle.

 

Down Payment

 

Your down payment reduces the overall cost that you pay to a dealer. Most dealers expect buyers to put forth at least 10 percent of the car’s value as a down payment. If you have a questionable credit history, a dealer will expect an even higher down payment. If you are buying a $20,000 vehicle and have a decent credit score, you will need at least $2,000 to even think about making the purchase – and that doesn’t include a few extra expenses that most people do not take into account.

 

Title Fees, Taxes, Registration, and Insurance

 

What many do not consider when buying a vehicle are the other associated items that must be purchased as well. Buyers will pay sales tax on the car. There are also title and registration fees to pay to the state department of motor vehicles. You cannot forget about auto insurance either. In most states, you cannot purchase a vehicle without proving that you have auto insurance. Depending on how you choose to pay for insurance, you will need several hundred dollars to cover these expenses.

 

Automobile Maintenance

 

Once you make your purchase, your car expenses are not limited just to your car payment. You need to put gas in your car and you should schedule preventative maintenance to ensure its performance. Oil and oil filter changes every 3,000 to 5,000 miles will help extend the life of your engine. Tires will wear out and need to be replaced. Brake pads and rotors will need to be replaced as will a variety of other parts and fluids. All of these items cost money.

 

Be Prepared

 

If you are planning on buying a car, get prepared by saving money first. Ideally, you should save your money and pay cash for a vehicle. Save the amount of a car payment each month until you have enough to make the purchase. Having a vehicle that is completely paid for has its advantages. If you are ever in a financial bind, you can always use the vehicle as collateral for a car title loan. Embassy Loans, one of the Florida’s leading consumer finance companies, has helped thousands of customers achieve their financial goals.



Embassy Loans is a leading provider of auto title loans since 2005

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Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

Monthly Interest Rates range from 1.5% to 2.5% (18% to 30% APR), with 15-18 Month Terms.

No Prepayment Penalties!

Embassy Loans uses “Title Loans” for advertisement purposes only and provides auto equity loans. Embassy Loans Inc. is licensed under the “Florida Consumer Finance Act” under Florida Statute 516 and as such Embassy Loans is exempt from any licensing requirements under the “Florida Title Loan Act” to the extent that any of Embassy Loans’ activities involve the making of a loan of money to a consumer secured by bailment of a certificate of title to a motor vehicle.

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Frequently Asked Questions

What is an Auto Equity Loan?

An auto equity loan, sometimes known as a car title loan or a car equity loan, is a type of loan that allows you to borrow money by using your vehicle as collateral. The loan is secured by your vehicle, meaning you agree to use the equity in your car to back the loan. 

What is an Unsecured Personal Loan

An unsecured personal loan is a loan that does not require collateral. Funds are provided based on your credit worthiness and your ability to repay. 

What Is the Credit Builder Program

The credit builder program is designed to help individuals establish or improve their credit score with the primary purpose of building a positive credit history through regular payments.

Can i have more than one Loan at a time?

Embassy Loans can only extend one loan at a time and it’s advisable to start with one and focus on making payments in a timely manner to prevent default.

What happens if I miss a payment?

Missing a payment can have negative consequences, including late fees, a drop in your credit score, and potential default on the loan. Consistent, on-time payments are crucial to benefit from the program.