| Other than your home, your car is probably one of the | | | | source of market intelligence for the automotive |
| largest purchases you will ever make. Uncertain news | | | | industry. Because these programs typically extend the |
| about the economy and auto industry, as well as | | | | warranty by years, rather than a few months, they |
| tighter credit requirements, may leave you a bit | | | | offer more protection for your investment. Hence, they |
| hesitant to buy a new or used car. However, now | | | | can be a better investment. |
| may be just the right time. Never before has the auto | | | | Take advantage of incentives when buying a car |
| industry offered consumers so many incentives, so | | | | * Manufacturer and dealership rebates and incentives - |
| you may find the deal of a lifetime! | | | | Hit hard by the recession, the U.S. auto industry is |
| Although buying a car can be exciting, it is also a | | | | struggling. To entice potential buyers, both dealerships |
| significant investment. Following these tips as you shop | | | | and manufacturers are offering an unprecedented |
| for a new or pre-owned automobile, van or truck can | | | | number of incentives. Check online and in the local |
| help you make smarter decisions when it comes to | | | | newspaper to see what deals are available in your |
| finding, and getting, the best possible deal. | | | | area. |
| Do your homework before purchasing a new or | | | | * New Energy Tax Credit - If you are open to owning |
| pre-owned vehicle | | | | a hybrid, diesel, electric or other alternative fuel vehicle, |
| * Consider the timing - The best time to buy a car is | | | | check the tax incentives at FuelEconomy.gov. |
| June through December. Auto sales have declined, so | | | | Although many have phased out, there are still several |
| dealers are more willing to make deals. In addition, in | | | | that can save you hundreds, maybe thousands, of |
| order to make room for the new models, dealerships | | | | dollars in taxes next April. |
| push to reduce their inventory, often by offering | | | | Find the best financing |
| shoppers extra buying incentives. The worst time to | | | | * Check your credit report - Before you begin |
| shop for a car? When yours is no longer running. | | | | negotiating, obtain a copy of your credit report. |
| Never shop when you are desperate. Instead, plan | | | | Knowing your credit score before you apply for an |
| ahead and schedule time to shop around to find the | | | | auto loan can help you determine what interest rate |
| best deal. | | | | offers to expect. According to the Fair Credit |
| * Research local prices - When it comes to car | | | | Reporting Act (FCRA), each of the national consumer |
| shopping, it pays to be prepared. At TrueCars.com, | | | | reporting companies (Equifax.com, and |
| you can find out what other people in your | | | | TransUnion.com) must provide you with a free copy of |
| neighborhood actually paid for their cars, as well as get | | | | your credit report each year. For the best results, |
| the factory and actual dealer's costs, average price, | | | | experts recommend that you: |
| and a target range. Other reputable sites, like and | | | | - Eliminate credit card and other debt, as much as |
| (Kelley Blue Book), provide similar information for both | | | | possible - Have a credit score of 670 or above - |
| new and used cars. This is helpful whether you are | | | | Maintain a new job or residence for at least 12 months |
| buying from a private owner or a dealership. Take a | | | | - Have a prior loan with at least 18 months of reporting |
| folder with this information when you shop for a | | | | to the credit bureau |
| vehicle. Armed with this knowledge, you are more likely | | | | * Look for a no down payment option - In the past, |
| to negotiate a good deal. Finally, be prepared to walk | | | | consumers were able to obtain auto loans with no |
| away if you are not offered a fair price. | | | | money down. Today, most lenders require a down |
| * Review the vehicle history - Never buy a used car | | | | payment between 10 to 20 percent of the purchase |
| without a history report, like the ones available at Many | | | | price, although there are still plenty of good deals that |
| dealerships provide a free car history report. However, | | | | can be found. Some banks like Fifth Third Bank are |
| if necessary, you can order one online for about $30 - | | | | continuing to offer no down payment financing. |
| it could prevent you from making a poor investment, | | | | * Find a low interest rate - If you need vehicle financing, |
| like buying a car that was totaled due to an accident | | | | finding a competitive interest rate can save you |
| or had other catastrophes, such as having been stolen | | | | thousands of dollars over the course of your auto loan. |
| or in a flood. | | | | Before you apply, ask if you could qualify for any |
| * Ask about the warranty - If you are buying a used | | | | extra incentives. For example, Fifth Third Bank offers a |
| car, don't buy one without a warranty. Purchasing a | | | | rate discount when you make payments from a Fifth |
| vehicle "as-is" is only asking for trouble. Sales of | | | | Third Bank checking account. Although buying a car |
| certified pre-owned (CPO) vehicles have increased 30 | | | | can be exciting, it is also one of the largest purchases |
| percent since 2002, according to AutoData, a leading | | | | you may ever make. |