| Buying a new or used car? An automobile is | | | | when talking to the dealership you will have in the back |
| undoubtedly one of the largest purchases you will | | | | of your mind a next-best option in case you can't get |
| make this year. Unless you are prepared to fork out | | | | the financing deal you want through them. |
| 100% of the cash needed for the purchase, you are | | | | 4. Negotiate your auto price with financing in mind: |
| going to need to navigate the world of car financing. | | | | Remember that the entire dealership works as a team. |
| And when it comes to buying a car, financing is no | | | | If you negotiate an exceptionally low price on the car |
| insignificant detail: the choices you make now about | | | | with the salesperson, chances are that the finance |
| your loan's interest rate, how long you will take to | | | | department will try to get you into a more expensive |
| repay your loan, and the amount of your down | | | | financing deal. Are they crooks? Not likely. Rather, just |
| payment will play a big part in your financial future for | | | | like anyone else, they are trying to turn a profit. |
| the length of the loan and beyond. | | | | 5. Never accept the first financing offer: Once you |
| Before you buy a car, check out these 7 best car | | | | have agreed upon a price of your new car and you |
| financing tips: | | | | are sitting down with the financing person to discuss |
| 1. Check the newspaper or online for the best | | | | loan terms, let him or her make the first financing offer. |
| advertised interest rates: As the economy goes | | | | No matter how reasonable it seems, make sure to |
| through its natural cycles in terms of the availability and | | | | reject the first offer he or she presents to you. |
| cost of borrowing money, interest rates go through | | | | Remember, they can always do better. Ask for better |
| their own cycles as well. A great way to gauge the | | | | terms and you will likely get what you ask for. |
| current interest rate climate is to check the newspaper | | | | 6. Choose the shortest payback period possible: Opting |
| or auto dealer websites for their current best deals. | | | | for a longer payback period of say 6 or 7 years may |
| You can rest assured that the advertised deals are | | | | seem attractive, given the much lower monthly |
| their best, since those ads work to get people in the | | | | payments. But, remember that in doing so you will be |
| door. For example, if you see some 0% interest rate | | | | paying a small fortune in interest over the life of the |
| deals being advertised, you now know the best-case | | | | loan. Not only that, but you may get tired of your car |
| scenario for when you approach a dealership. | | | | and want a new one before the next 7 years go by. |
| 2. Decide how much cash you can put down: The | | | | All the more reason to agree to a 3 or 4-year loan, if |
| amount of your monthly payments, as well as the total | | | | you can swing the payments. |
| interest you pay over the life of an auto loan, depend | | | | 7. Remember that you can always walk away before |
| on the payback period of your loan and the amount | | | | signing: While at the dealership, always keep this in |
| you are willing to put down in cash. Obviously, the | | | | mind: you always have a lot of other options. Sure, |
| more you can afford to put down in cash for your car | | | | some of them may require a bit farther of a drive to |
| now, the less you will have to borrow. Be sure to put | | | | get to, but you should never feel obligated to buy from |
| down as much as possible, but of course leave | | | | the first dealership you contact. Just knowing that you |
| yourself a "padding" of money for a rainy day. | | | | have other options will take the pressure off, helping |
| 3. Get pre-approved for a loan before visiting the | | | | you avoid agreeing to a financing deal that you are not |
| dealership: Once you walk onto the lot of an auto | | | | comfortable with. |
| dealership, you are much more likely to buy a car from | | | | Keep your eyes open and ears perked during the |
| them than otherwise. And, the dealership personnel | | | | entire car financing negotiation process. Do not let your |
| know this. A great way to keep your options open in | | | | guard down until you drive off the lot with your car. |
| terms of getting the best car financing is to go to your | | | | And remember: you can always decide to try your |
| local credit union or bank and get pre-approved for an | | | | luck somewhere else. |
| auto loan before heading to the dealership. That way, | | | | |