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Page 4 Saturday, June 25,1994 “Houston Times-Journal - Special Edition Tips For Buying ‘Low’ Payments Require Careful Bank Evaluation By EDDIE WILSON Special To HTJ Been out there “kicking tires” at the local dealerships? Or, perhaps you’ve been searching the classifieds for that used vehicle with one owner and low miles... Whether you have been or not, odds are that in the near future you will be purchasing another vehicle. It’s also likely that you will need to finance a portion of the purchase price of the vehicle. Financing your purchase can be as simple as calling your banker or visiting with the finance manager at ihe dealership. However, there are a few things that you should remember when obtaining the car loan. Other than borrowing from family or friends, your financing choices boil down to your bank or the finance department at the dealership. Both places have their advantages. Typically, financing can be obtained within a short time period (an hour or so) at both locations. Financing at the dealership is convenient because you are already there, though bank loans can also be handled very quickly. The advantage of financing with your local banker is that the bank will continue to service your loan at the local level, which is very important should problems develop over the course of the loan. If considered a “preferred credit risk”, a buyer may be able to obtain financing for MECHANIC ON DUTY • Pickup and Delivery • Tune ups • Brakes • Tires • Auto Parts • Batteries • Oil & Lube • Tire Repairs Jit • Computer Tire Balancing | ykl! L sti HAND WASH AND POLISH INSIDE AND OUT Comer Swift & Houston Lake • (912)987-1989 4 Minutes from 1-75 &HELU Lumpkin Shell Service Center “Over Thirty Years Experience” 100 percent of the price of the vehicle. A preferred risk is an individual who has an excellent credit history, a solid employment record with stable income, and an excellent capacity to repay the loan as evidenced by a low “debt-to-income” ratio (35 percent or less). Otherwise, a buyer can expect a down payment requirement of 10-20 percent of the purchase price. Most lenders will make automobile loans for up to 60 months on new vehicles. Obviously, the shorter the term, the less interest will be paid over the life of the loan. For example, on a 60-month, $15,000 loan at 7.5 percent, a borrower will pay $3,034 in interest, as compared to $2,409 for a 48-monlh loan. Conversely, the longer the term, the lower the total monthly payment. For example, the 48-month payment is $363 as opposed to S3OO over 60 months. Of course, used vehicles are financed for shorter terms than new vehicles. When comparing rates from one lender to another, make sure that you are quoted the Annual Percentage Rate (APR). This is the true rate of interest charged which includes the effects of any loan fees to the “stated rate.” By regulation, banks are required to state the APR when a rate is requested, and only by APR’s will a buyer be able to compare the true cost of financing. BUf ■ i ISH 1025 MACON RD • 987-3813 • Fuel Injection Cleaning • Computer Diagnosis • Shocks/Struts • Mufflers & Exhaust Systems • Catalytic Converters • CV Joints • Rack & Pinion • Draw Tile Hitches <NAPA> 1025 Macon Road Ig^jtCAßEi •ASE Certified I' echanic •Your Comprehensive Car Care Center •Work Done On Most All Cars • Convenient Location Arnold's Auto Sme 1202 Main Street • Perry 987-9439 987-3813 (BP)