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5 Tips for Buying a New Car

car financingBuying a car can be overwhelming.

You have a countless number of options, not only in your choice of vehicle, but also where to buy from and who to finance through. With so many options it’s extremely important that you take your time and make a good decision.

Here are five tips that’ll help you in your car buying process.

Know What You Can Afford

Before you start vehicle searching it’s imperative that you set your budget. A car payment can be a huge financial burden if you’re not careful. What you want and what you can afford are usually two different things.

Take a good honest look at your monthly income and expenses and be conservative with your vehicle budget.

Know Your Credit Score

After you’ve determine your budget check your credit score. This will give you a good idea of what kind of interest rate you’ll receive and whether or not you’ll be able to secure traditional financing.

After you know your score do some research into what kind of interest rates you qualify for. If interest looks like it will be more than you thought then you probably need to re-evaluate your vehicle budget.

Choose a Term

While choosing a long financing term, like seventy two months, will lower your payment it also means you’ll be paying more in interest and will be chained down to a monthly payment for years.

Go with the lowest term you can handle.

Search for a Great Deal

After you’ve got everything else squared away it’s time for the fun part: car shopping.

Check around with not only dealers but also independent sellers. You want to get the most bang for your buck so look long and hard and don’t forget to negotiate.

Secure Financing

After you’ve found your car it’s time to finance. If you have good credit you can get a loan through a local bank or credit union.

However, if your credit is less than great you need to look into another form of financing. Check with a service like Moneybarn that looks at more than just your credit score.

Conclusion

Buying a vehicle shouldn’t be an impulse decision. Take your time to really think about what you can afford and how long you want to pay. You also need to think about car insurance. You can get youi car insurance quotes online.

You’ll be so glad that you made a well thought out, responsible decision in the end.

About the author

James

1 Comment

  • I think you also have estimate the maintenance fees. If not, you might have to spend as much money as if you buy a newer car. For example, if you get an old car for cheap, you might have to pay more for gas since it’s most likely not fuel-efficient and the spare parts are not readily available and possibly more expensive.

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