Nowadays, with the high availability of car loans, buying a new or used car becomes relatively easy. Auto dealers provide many useful car-financing tips for buyers, helping them understand where and how to invest while at the same time avoiding scams.
- Create a Budget. Sticking to your budget will help you avoid financial issues later on down the line, allowing you to enjoy your new purchase without buyer's remorse. Write down which features you need in your car. Do you need room or a built in car seat for a child? Do you need a powerful engine? A leather interior? Do you want diesel or gas? There are many features to be considered, and once you get a handle on these, you can decide which features must stay and which can go in order to stay within your budget.
- Research the Dealership. Always check several cars dealerships and their prices (including all applicable taxes) so that you have an idea which cars will fit in your budget. You can easily obtain all the necessary information regarding the car on the Internet, magazines and newspapers.
- Check the Condition of the Timing Belt. Not everyone knows what to look for underneath the hood of a car. One item to ask about is the car's timing belt. Keep an eye on the manufacturer's recommendations and be vigilant about replacing the timing belt on schedule. This is an expensive repair, which must be done according to the manufacturer’s recommendations, but is essential as avoiding problems with the timing belt can prevent massive damage to the engine! Check into the availability of manufacturer's replacement parts for the model of the car you need. Spare parts that are no longer being manufactured for your make and model can be very difficult to find and therefore will be extraordinarily expensive.
- Ask for References. Ask questions of family, friends and neighbors who have the same vehicle as the one you are considering buying. Note what they tell you about fuel consumption, how many miles they get to the gallon and any performance concerns you may have.
- Comparing More than Price. If you want to buy a used car, try not to have a car that has traveled over 100,000 miles, and requires more care and maintenance in relation to a newer car. Many car dealers offer discounted prices, making newer or new cars affordable. When buying a car, consider more than the sticker price, as this is a long-term purchase with long-term costs associated with it. It may pay, literally, to spend a few more dollars to avoid some of those costly and inevitable repairs you'll incur with an older model or car that has more than a few miles on the odometer. Remember, this is the best time to invest in a car!
- Compare Loan Rates. There are many auto finance companies offering personal loans where you can compare rates and shop around for the best rate possible. These companies often offer 24×7 supports through a financial advisor, help you complete the application faster, and can even point you in the direction of 2 or 3 different places to get the best deal. Avoid applying to a dozen places for loans as this can damage your credit rating. As with the car you plan to buy, it's best to be selective about the auto finance company you choose.
- Negotiate with the Car Dealer Face to Face. There is no benefit to negotiating over the phone. Visit the dealer in person, if at all possible, so you can negotiate and ensure the guarantee, warranty, maintenance and price of the vehicle you're buying. Negotiating face to face gives you the advantage!
If you follow these 7 auto financing tips, you will be on your way to purchasing a vehicle that will serve your needs without breaking the bank. Asking questions is key, as is listening to what others have to say. Once you have compiled all the information you need, you will be on your way to owning that new or used car!