How To Finance A New Car: The Complete Guide

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Buying a vehicle is a major financial investment for anyone. Few people today have the cash on hand to buy a car without financing. Financing is a complicated subject that few people understand. If you are the type of person who does not understand how to get the best deal, this guide should be able to help you. Here are some of the best tips for financing your dream car and enjoying the process along the way.

End of the Month Sales

One of the best ways to save money on a vehicle is to wait until the end of the month. Most car salespeople work on a strict commission basis. Most of the commissions that they earn are based on what they sold during the month.

There are times when a salesperson needs to sell only one more car to receive a big commission check. This is the perfect time to take advantage of getting a great deal on the price and on the financing. Many people negotiate the price of the vehicle, but they never negotiate the terms of the financing. A small decrease in the interest rate on the loan can make a huge difference in the total cost to purchase the vehicle over time. Never forget to negotiate the payment terms as part of the overall deal.

Know Your Limits

One of the positive benefits of paying with cash is that you have a limit on how much you can spend. This limit becomes much less clear when you take out a loan to purchase something. There are many people who end up spending way more than they originally planned once they received financing.

You should go into the buying process with a firm idea of how much you want to spend. Even if you qualify to get a loan for $50,000, you should only look at vehicles within your original price range. Nothing is worse than buying an expensive vehicle and regretting it immediately.

Research Vehicle Options

There is more information available online than ever before when it comes to buying a vehicle. There is no excuse to skip gathering information on a vehicle before purchasing it. You should have an idea of how much the vehicle is worth before you even go to the car lot. This will help you in the negotiation process while purchasing a vehicle.

In addition, once you decide on the vehicle you want, you should look for ways to gather specific information on the vehicle. There are many people who find out their vehicle was in a major accident or had major repairs completed. This could be a red flag that your car has inferior parts or will not last as long as other vehicles.

Wait for Deals During the Year

If you want to get a great deal on your vehicle, wait for certain times during the year. There are major sales at almost all of the holidays. If you are already going to purchase a vehicle, it only makes sense to go when the vehicle is the cheapest.

Many car dealerships want to move the inventory as quickly as possible. At some of the sales, the cars will be reduced in price by a large percentage. This is the perfect time to take advantage of buying a vehicle and getting a great deal in the process.

Overall, the process of buying a vehicle can be long and arduous. However, a car is one of the most important financial decisions that you can make. You need to do research and make sure you understand exactly what you can afford.

Latest Activity: Oct 06, 2017 at 6:57 AM

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