Reason for buying a car
Sources for used car buying
Used car buying tips
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Buying a car online
Tips about Financing
Before you sign a contract
Car dealer scams
Auto financing scams
Tips about Financing
Before purchasing your dream car whether new or used, try to
assess if the budget can really afford it.
How will it be paid?
Who will be helping to pay for it?
What is the price limit of the car to be bought?
How long will it take to pay off the car?
These should be considered even while planning to buy the car.
The trend nowadays is that people buy the cars by cashing out the
down payment, and the balance will be paid by installment.
Others are just lucky enough to have saved the right amount of money
that they are able to cash out the total cost of the car, which, by
the way, seldom happens anymore. Never set aside the
possibility of paying thousands of dollars when buying from a dealer
or a specific car company, where in the end, they charge you more
for the interest which takes years to pay off.
Once you have found a way to finance the car you have your eye on,
then it's time to start shopping around. There are credit
unions and even local banks that are willing to loan the needed
amount to purchase the car with an Annual Percentage Rate of only
1.9 per cent. However, this may turn out to be a catch, since
this will only be happening on the first year. Without prior
notice, these interest rates can increase which is a total
inconvenience for those with just a fixed income every year.
It is a big plus if a buyer is a member of a credit union.
Being a member could save you the trouble of spending a whole day in
a lender's office because the processing of the loan could only take
just a few minutes after filling out the necessary papers for the
request. In a credit union, fifteen to twenty minutes is all
that is needed to do the application. They could even loan up
to $25,000.00 within just an hour after signing the papers.
It can save you quite a bit of money by researching prior to making
that loan for a car. Car dealers are really digging out most
of the pennies in a buyer's pocket by issuing interest that is
sometimes unreasonable. There are two things to consider when
thinking of financing a new car:
First, what's the price you are willing to be spend? More
often than not, asking yourself the question: How much of the car
price do you intend to buy instead? Only do so if you know you
can afford the car of your choice. Consider regular monthly
expenditures. The monthly payment for the new car should not
get in the way of paying the fixed expenses. If in case it
does, by merely doing the math, then just consider an older car or
one that may not be quite as “upscale.” Just make sure that
all is checked and examined to avoid hassle in the future.
Second, is it really important to change cars every two to four
years? Consider cars offered on a lease, if so. Other
dealers and car companies offer the leasing of a car for that amount
of time, which you can return but no money will be refunded.
However, there is an allotted amount of distance or mileage that
should be covered during those years of lease, but this is
negotiable. On the other hand, if a buyer is not interested in
changing cars, it's best not to opt for the cars for lease.
It is safest to get a loan from a credit union or a financial
institution instead of a local car salesman; they will definitely
try to squeeze your bottom dollar. Get information from
someone you can trust and is expert about financing a car, for they
will be able to give you tips to benefit your own interests.
Financing either a new or a second hand car is a lot of sweat, but
the determination to get the best car at the best price can be
considered a success.
This should be a win, win situation for anyone. After all it’s
your money that is at stake here. Do your research and it can
be a beneficial decision on your part.
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