The bright, shiny car parked
in a dealer’s lot is calling out to you. However, a knee-jerk decision to buy this vehicle could do you more harm than good over an extended period
of time.
Looks can sometimes be deceiving for automotive shoppers. The vehicle you purchase might be the car of your dreams now, but the honeymoon period will wear off eventually, and a poor choice could leave you with higher-than-average car payments or costly repairs down the line.
The car-buying process can be difficult and time-consuming, but informed car buyers will devote plenty of time and attention to finding the right vehicles. In fact, people who understand the following car-buying essentials will enjoy their shopping experiences.
1. Financing – Automotive dealers have financing departments ready to serve prospective buyers, but diligent consumers can overcome potential roadblocks by submitting loan applications to local financial institutions in advance.
Car and Driver magazine points out that financial institutions often provide better interest rates to shoppers than they might otherwise receive at car dealers. In addition, buyers can establish budgets that show them how much they can afford to pay each month to acquire their dream cars.
2. Credit history – Poor credit can damage a shopper’s chance to make major purchases, but there is plenty that can be done to improve a person’s credit score quickly.
Submit credit report requests before buying a car. People are eligible to receive one free report from each of the three national credit reporting companies every 12 months under federal law. Consumers can take advantage of these opportunities to find out exactly how their credit histories could impact their car-shopping experiences.
3. Research – Evaluate the market to find the best prices on automobiles.
Browse the selection available at dealers online. Miscellaneous publications also provide details about a wide range of cars and trucks and help shoppers assess the pros and cons of different models.
In addition, consumers can contact automotive professionals to learn more about specific vehicles. Car dealers run promotions throughout the year, and cost-conscious buyers should review the offers available from different merchants.
4. Title and registration requirements – Contact the local Registry (or Department) of Motor Vehicles to learn about title and registration regulations. RMV guidelines vary throughout the country, and learning about title and registration expenses gives buyers extra time to map out their budgets.
Buying a new car can be great if you do your homework ahead of time.
Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.
I got socked with an 18% interest rate on a 13k car loan for a Honda Civic. I had it refinanced just after two months at a credit union. They lowered the rate to 7% over double the length of the loan. But they did not know I know Dave Ramsey;)
I paid off two hospital bills, two major credit cards, and eliminated my entire car loan in just one year. The trick is to focus paying down all your doable (smallest) debts first while arguing with banks until you hear “YES” for refinancing your auto loan. You need to hear “YES” every once in a while. Fight until you hear it.
Hi Caesarbc, We’re glad that you were able to get yourself out of that initial arrangement. Unfortunately, we hear stories of people charged outrageously high loan rates pretty often. In the past 6 months alone, we’ve saved our members over $158,000 in auto loan interest. We can’t always give people the exact rate that they want, but we really do work to always give them the best rate that we can. If you compare, credit unions will nearly always offer some of the most competitive rates and best terms around. We as an industry really do live by the motto of, “People helping people.”