| 10) Fix any credit problems you may have to receive a | | | | months on the road. OUCH!!! |
| lower interest rate. | | | | 5) Do your homework to find the best possible deal. |
| I work for a car dealership that handles a lot of sub | | | | The Internet is a wonderful invention and affords |
| prime auto loans and it is not uncommon for us to | | | | consumers the luxury of searching hundreds of car |
| write contracts with APR's as high as 24.99%. What | | | | dealerships and their vehicles in a very short period of |
| this means to the customer is a finance charge that is | | | | time. The great thing is you get to compare vehicles in |
| upwards of 80% of their total amount financed, i.e. | | | | the comfort of your home with no pushy sales people |
| amount financed equals $10,000 and the finance | | | | bothering you. |
| charge they will pay to the bank is $8,000. That's a lot | | | | 4) Finance for 48 months or less. |
| of wasted money paid to the bank. | | | | This of course, is not always possible, but some |
| 9) Maintain your vehicle. | | | | customers are financing vehicles for as long as 96 |
| Take care of your vehicle both under the hood and | | | | months. That's 8 years! Don't do it. A 72 month loan is |
| cosmetically. The better it runs and the better looks | | | | the max I'd ever suggest, but 60 or less is a much |
| equals better money when you trade it in. | | | | better option. |
| 8) Get top dollar for your trade. | | | | 3) Put 30% or more down. |
| Check the Internet and local publications to see what | | | | Again this is not possible for most customers, but if |
| vehicles like yours are selling for. You won't get this | | | | you are able to save before buying it can help |
| money when you trade it in, the dealer has to make | | | | immensely in the amount you'll pay in finance charges. |
| money when they resell it, but it will give you a general | | | | Do you really want to pay interest on your tax, title |
| idea of what vehicles like yours retail for. If you can sell | | | | and license? |
| it on your own, you will always get more money this | | | | 2) Pay more than your minimum monthly payment. |
| way vs. trading. | | | | If you can tack on an extra $50 a month, or better yet |
| 7) Buy a vehicle that is easy to resell. | | | | double your car payments, you'll find yourself in a much |
| Don't buy a vehicle there is little demand for. For | | | | more equitable position much faster and pay a whole |
| instance, the purple VW Beetle with orange polka dots. | | | | lot less in finance charges. |
| You may love it, but most car buyers will be looking for | | | | 1) Do not buy more vehicle than you can comfortably |
| something a little more conservative and it won't be | | | | afford. |
| worth as much on trade in. | | | | I know that here in America it's hard to drive an EX |
| 6) Don't buy a new vehicle. | | | | when your neighbors, Mr. and Mrs. Jones are driving |
| In our current economy some vehicles are losing | | | | the super deluxe LX model, but is it really worth |
| massive amounts of money as soon as they are | | | | strapping yourself for cash month in an month out for |
| driven off the lot. For instance, some trucks and SUV's | | | | the next 5, 6, or 7 years? Humble yourself and you'll |
| are losing 40-50% of their value in the first few | | | | find life is better when you have more cash. |