To Finance or not to Finance - That Really is the QuestionAuthor: Rosendo Benton
Determining your financial situation is the most important step. You need to know how much you can afford to pay each month and realize that most car loans last for 5 years. Can you afford to make this monthly payment for the next five years?
Decide what kind of car you want to buy and if you can afford it. If not, then you may need to settle for something for a little cheaper. Don’t try to set yourself up for a too expensive car payment, after all, how can you enjoy your new car if you are struggling to pay for it? Remember a car gets us from point A to point B and that’s all.
To start with, do some research on the internet. Most car dealerships have extensive web sites with all of the information you will need to narrow down your search. Get dealers to compete with each other ensuring that you will get the lowest rate. Bring in an ad or print out a web page that has a great deal on it. Most times a car dealer will try to negotiate the price to get your business if they know you are looking elsewhere.
Never settle for the rate that a car dealership offers you. If you think it is too high, think about using another finance company. You don’t have to accept their financing. Go through your own bank and see how their rates compare. Many times you can find much better financing just by shopping around.
Adding on the extras that you really don’t need will raise the price of a car. Do you really need the towing package? AAA has a great rate for roadside service and their towing is included. Undercoasting and rustproofing are unnecessary expenses as well. If, like me, you live in a hot climate, the undercoat will just melt off and leak all over your driveway. Every addition adds to the amount you will need to finance. Seriously, does your car need to be ’blue tooth’ compatible? Do you really need the talking dashboard, that most likely will give you bad directions? Consider all of the upgrades before you sign up for them.
Save up as much as possible for your down payment. If you can put down about $3,000.00, you will have to finance less and this will lower the monthly payment.
Another suggestion is to use home equity to buy your car outright. I refinanced my home and paid cash for my car. Walking into a dealership with a certified check gives you a heck of a lot of room to deal. The first dealership I walked into refused my offer, even though I had the check in my hand, so I walked out. I drove across town and bought the same car from another dealer who knew I was serious about what I would end up paying for the car. Crazy enough, the first dealer called me a week later stating he would accept my offer. Too bad for him, I already had the car I wanted at the price I was willing to pay. By using cash from the refinance, my interest rates were extremely low compared to auto financing rates and I barely feel it when it comes to making my house payment because I only added an extra $30.00 on to my house payment every month.
Bottom line, do your homework. Don’t be in such a hurry that the dealer ’sees you coming’. They want to sell their cars, it is up to you how much you end up paying.
Article Source: http://www.articlesbase.com/loans-articles/
to-finance-or-not-to-finance-that-really-is-the-question-501377.html
About the Author:
The use of internet has made the process of applying for bad credit new car loans faster and easier. Now with just a simple click of your mouse, you can have the required amount of money in your account. You need to go through research to check for genuine loan providers. Some fake sites can misguide and cheat you if you are not careful. Check out the genuine car loan lenders at http://buy-newcar.net/ now and get a car of your dream.
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