When a car isn’t selling, manufacturers will provide incentives so they can clear out certain models. The incentives are usually in the type of a discount, rebates, cash back or a low interest rate. For the best deals, shop at the end of the month when dealers need to meet their sales quota. You will typically find the best deals on a new car loan when you look online for your car financing needs.
Beware the Bait and Switch – The 0% interest rates advertised on TV are normally only for people with the best credit scores, and even then, they are usually restricted to short term (24 or 36 month) loans. Manufacturers are pulling the old ‘bait and switch’ with these low APRs to get you into a dealership. Try to apply online with a lender to have your financing already addressed before stepping foot on the dealership lot. Then you can pocket the rebate and help lower the number you are borrowing. Online lenders will offer more competitive rates and a better overall car loan experience.
Take Your Time – Do not put off car shopping until the eleventh hour. You could make hasty decisions and finish up regretting them later. Car shopping should take at any rate a few weeks, so if your present ride isn’t too responsible, start doing investigation and getting quotes on prices and loans now. If you spend the time to have the best loan rate feasible, you’ll end up saving yourself a lot of money in the long term. You might even check online if you are purchasing a used car at sites like Auto Trader or eBay Motors.
Lease or Buy? – Should you lease or buy? If, in recent times, you always have a car payment, a lease could be better for you. Generally, the payment will be lower and you won’t be bound to a car that might lose value more than expected at the end of your lease. If you pay off your car within a few years then have several years without a payment, buying may be more advisable.
Always Take a Test Drive – You should never buy a car without test driving to begin with. It sounds obvious, but many individuals don’t take this important step of the car buying process. Take the vehicle on the highway, around back roads and through rain and snow. See how it deals in lot of different conditions. If you have kids, bring their car seats with you to see how they fit.
Always Get a Carfax Report – When buying a used car, always get a Carfax report. The report will inform you if the car was ever in an accident or had flood or fire damage. If you’re buying from a private seller, have them give you the VIN number and order the Carfax report yourself. Dealerships have Carfax subscriptions, so if they avoid the report, they probably have something to conceal.
Purchasing a new car should be a fun experience. Do your homework, shop online and lock up your car financing ahead of time and you will be on your way to big savings. Happy shopping to you!