Car loans: Counting costs.

Most of us sooner or later faces the need to take out a bank loan. Very often it is associated with the purchase of a car on credit. Programs for which you can buy a car on credit, a lot, and they offer a variety of options, among which we can choose the most convenient. Typically, buying a car on credit, the borrower applies for a fairly large loans to the bank. What determines its size? First, the car price and the amount of available savings. The more you can pay as a down payment, the less need to take in the bank. Secondly, the level of income. If you buy a car on credit, the amount of monthly payments should not exceed half of your income. Even if you're willing to pay more, the bank will not do. Thus, the maximum amount of credit you can roughly calculate your own. Fortunately, the majority of banks (as well as mediators and automakers) have on their websites credit calculators to calculate the cost of buying a car on credit. Now that you know this amount, considering how much to save, to make a down payment to buy a car on credit. Perhaps, the amount would be too heavy - will have to moderate their demands and to find another model in order to buy a car on credit. In planning its future costs for the purchase of a car on credit, especially if it's your first car, it is important to bear in mind that not only have to spend money to repay the bank, but also for the maintenance and servicing of the machine. This may be a significant expense in your budget. In addition, buy a car on credit - which means, in most cases, buy insurance and hull insurance. Banks require it as a guarantee of preservation of collateral, that is the car itself. Because buying a car on credit, and should calculate these costs. Probably will have to reduce the projected amount of the loan to be able to make timely payments on the loan. And this should be done strictly following the due date for payment - any delay obrastet additional interest and spoil your credit history.