Buying a car is the second most
demanding step when it comes to personal finances; the first one is buying a
new apartment. There are many ways of financing a car purchase, but only few of
them can qualify as inexpensive ones. What appears to be the best deal in the
hood usually hides certain disclaimers written in fine print. So, let’s see how
to get the best out of buying a new or used car while not getting ripped off.
Look
around to compare offers
One of the best ways of getting the best
deal for a car loan is spending some time on the research. Luckily, nowadays
you do not have to go from one car dealer to another, but simply have a look at
their online deals and offers. Such a convenience will save you a lot of money
and time that would otherwise be wasted only on fuel to get around different
dealers.
Bargain
whenever possible (used cars only)
If you decide to get a used car, then negotiations with a dealer should not be ruled out as a possibility. The
dealer you opt for must have bought that vehicle at a much lower price than the
one they are offering you. So, you can simply bargain, like when you are buying
vegetables at a local market. Also, it would be perfect to find an offer
similar to the one you are aiming at, but which is less expensive. That will
make your dealer lower the price and you will walk out of the dealer's place
with a larger amount of money and the car that you wish to have.
Car
within your needs
This decision should probably be made
even before you open the first link with car offers or call the first dealer.
You have to make clear why you need a car. Once you have made up your mind
about the cause of the purchase and the future use of the car, it will be
easier to set other priorities. If the car is going to bring you money, then
even a new vehicle is a great option. People who transport passengers as an
extra job or work as tourist guides must have a new and reliable car. If you
are among them, you should get
the best equity auto finance offer that will meet your needs.
On the
other hand, if your car will serve as a family vehicle, a robust and safe
second-hand car could be the right choice.
Large vs. small down payment
The
rule of thumb is that you should never trap more cash than necessary. If you
have $3,000 in cash and you decide to give the whole sum as a down payment, it
will get you lower interest rate, due to a shorter period of the loan payment.
However, if anyother unexpected expenses emerge in your life, you will have no
cash. It will maybe even force you to take a cash loan, with high interest
rates. So, always try not to give all your savings as a down payment. After all, that is one of the reasons why
you are going for a car loan.
Taking
a loan to buy a car is a smart move. You will get a chance to get a fine
vehicle and still have some cash left. The interest rates are usually pretty
normal for average loan periods (48-60 months), so do not be afraid of it. Pay
your car step by step and enjoy your rides.
Authors bio: Dan Radak is a VPS security
and Hosting generaly specialist. Currently he is employed as a consultant in a
couple of e-commerce companies. Lately he has been interested in financing
related themes. You can follow him on Twitter.
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