It’s the one thing I’ve never been able to understand, why is buying a new car or truck so hard? If you’re like me just the thought of “window shopping” fills you with a sense of dread. The pushy salesmen, the haggling back and forth and then there’s the whole financing aspect; you want the best rate without having to jump through hoops to get it.
Before you head out for an afternoon of car shopping, take a few minutes and consider these helpful financing tips listed below.
- Research the pros and cons of trading in your old vehicle vs. selling it outright. Definitely it’s easier to trade but remember the dealership is going to resell your old car for profit and will offer less than a private sale.
- You got pre-approved before beginning the search for a new home why not take the time and do the same thing for your new auto loan? Many times your local lending institution can offer lower interest rates and longer financing terms.
- Many times dealership will offer special sales incentives including low interest rates and cash rebates. Make sure you read all the fine print and then consider combing a rebate offer with outside third party financing for best interest rate.
- Super small monthly auto payments aren’t always the smartest decision when it comes to your financial health. The longer the payment the more you pay in interest. Three to five years is the optimum amount of time when financing a new vehicle.
- Don’t overspend when it comes to your down payment. Always remember how quickly a new vehicle depreciates and many times it’s best to leave your investments in place and finance instead. And stay away from these “no money down” deals; you’ll end up owning more than the car is worth from the beginning once taxes and fees are included.