Auto Loan Buying Tips
Have you ever felt like you bought an auto and financed it and don't really know if you got the right price or financing arrangements after it was all over? Well, don't feel alone. This is a common experience for many people who make auto purchases.
Guidelines for negotiating the car price can be found elsewhere, but we want to share some helpful tips on getting that vehicle financed at the best rates and terms for you.
The first step is to make sure that you negotiate the car's price separate from the vehicle financing arrangements. Most dealers want to lump it all together because they can hide quite a bit of the actual price of the vehicle in the loan contract, and they will usually just try to meet a monthly payment figure that you can live with rather than disclose all the details about the loan.
So your work actually should begin before you ever visit the dealer lot. Try to determine beforehand what vehicle(s) you are interested in buying and become familiar with the average cost for that vehicle, either online or locally. Then make sure that it will fit your budget. Most financial experts recommend that you shouldn't spend more than 10% of your monthly income on vehicle costs, including the loan, gas, repairs, insurance, etc.
Since you now know the price that you want to pay, you need to find out what the loan will cost, so visit some auto loan websites and/or local banks, and apply for an auto loan. See what rates and terms they offer you. Much of that will be determined by your credit history. If you can get pre-approved for a loan, all the better.
Experts also recommend that you try to put at least 20% of the car price on the loan as a down payment toward the purchase of the vehicle, either in cash or in the trade equity of your current vehicle. Why? Well, so many people are being put into loans these days with longer and longer payback periods and little down payment and the net result is that if they want to trade that car in within the first year or so they find that they actually may owe more on the car than it is even worth. So using sound financial decisions beforehand can prevent this from happening.
Now, using all of this information, the price you are willing to pay for the vehicle you want, the average loan you can get, and the best terms that you can get that will fit within your budget, you are now ready to visit the dealer, find the vehicle you have been thinking about and get the deal that will fit your needs. Remember to negotiate the price of the vehicle without financing first. After you settle on the sales price you can then reveal what finance terms you already have found and see if they can beat it.
Get the particulars in writing too. What is the price for the new vehicle? What is the trade amount for your old vehicle if you have one? If you finance through the dealer, what is the APR, the total amount financed, the total amount paid at the end of the loan, the total number of payments and the monthly payment figure itself? If the dealer will not give this clear, concise information, leave and go somewhere else to buy. If they can compete with your prearranged loan terms, then great. If not, get your auto loan elsewhere.
A word of caution. Keep it to business. It's exciting to buy a new car and it's also easy to get carried away and buy more vehicle than you need or previously wanted just because it looks so good or has so many features that the dealer will try to convince you that you can't live without. Having predetermined what car you want and the price you are willing to pay will keep you safe in these negotiations but only if you stick to your guns and don't give in to being upsold.
Using these strategies keeps you in control of the negotiation process and keeps you informed all along the way so that you can be confident that the vehicle and the auto loan you purchase is indeed the deal that you wanted.
About The Author
Duane Lipham is a senior editor for http://www.loans.dlbws.com which provides free information and resources for auto, personal, mortgage, home equity, and refinance loans.
Latest News
 Washington Post | As condition of loan, UAW can't strike against GM Detroit Free Press, United States - The US Treasury set myriad conditions on GM as part of the plan to loan the company $13.4 billion for survival. Those terms had not been fully disclosed ... UAW strike would put automakers in default of federal loans Autoworkers union begins talks on concessions UAW Barred From Striking |
 WSAV-TV | Consumer Borrowing in US Falls Record $7.9 Billion Bloomberg - Non-revolving debt, including auto loans, dropped $5.2 billion for the month. Fed policy makers last month cut the benchmark interest rate target to as low ... Consumer borrowing falls by $7.94B in November Consumers borrow less than expected US ECON: November Consumer Credit Falls By Record $7.94 Bln |
 stv.tv | Citigroup, Senators Agree on Bankruptcy Role to Trim Loan Rates Bloomberg - The revised bill Citigroup endorsed would give judges the ability to adjust principle payments or interest rates on existing loans, and could extend the ... Citi Reaches Deal With Lawmakers on Home Loans Citi reaches deal with lawmakers on home loans Citi Will Support Bill to Rework Bad Loans |
 Javno.hr | Loan Delinquencies Hit Record High Last Year Washington Post, United States - By Nancy Trejos Delinquencies on auto loans and home equity lines of credit reached their highest levels on record during the third quarter of 2008, ... Late loan payments hit record high in Q3 US consumer loan late payments at 28-year high Home-equity delinquencies at record level |
Sallie Mae Raises $1.5 Billion for Private Loans Washington Post, United States - Reston-based Sallie Mae has secured $1.5 billion worth of financing from investment bank Goldman Sachs for a batch of private student loans, a sign that ... Sallie Mae shares falter despite financing Lump of Coal from Sallie Mae Sallie Mae Closes $1.5 Billion Financing |
PennyMac, Led by Ex-Countrywide Head, Buys FDIC Loans Bloomberg - Known as PennyMac and led by Stanford Kurland, the firm is paying an average of 30 cents to 50 cents on the dollar for the loans and the FDIC is sharing ... FDIC Unnationalizes Some Debt BlackRock, Highfields-backed firm to share gains and losses with FDIC PennyMac Completes Purchase of $558 Million in Mortgage Loans from ... |
 Reuters | Banks Pare Fed Loans After Increase for Year-End Cash Bloomberg - Outstanding loans to banks through the Term Auction Facility dropped to $384 billion from $450.2 billion, the Fed release showed. ... Fed Says M1 and M2 Rise, Loans to Banks and CP Loans Fall Banks borrow more, investment firms less from Fed Will asset-backed securities return? |
 Boston Globe | Fed’s Rosengren Calls for ‘Concerted’ Fiscal, Monetary Policies Bloomberg - Fed policy makers have expanded the central bank’s total assets by $1.25 trillion to $2.14 trillion over the past year by increasing loans to banks and ... Rosengren sees path to recovery US FED: Rosengren Supports Expanded FHA Mortgage Lending Hub’s Fed chief: Deep recession confounds forecasts |
Legislative analyst doubts loans will fly San Francisco Chronicle, USA - Finding investors in a credit market that's in turmoil and a potential legal challenge on whether the state can take out short-term loans to balance the ... Report: Schwarzenegger's heavy borrowing proposal is risky Analyst has worries over Schwarzenegger plan to close budget gap |
 The Money Times | Lyondell Can Borrow $2 Billion in Largest US Loan Bloomberg - US Bankruptcy Judge Robert Gerber in Manhattan approved the loan at half-past midnight, after lenders spent five hours negotiating to resolve objections to ... Judge OKs LyondellBasell loans after Ch. 11 filing Bankruptcy loans approved for LyondellBasell Lyondell gets over $2 bln in bankruptcy financing |
Resources
-
Bad Credit Loans, Bad Credit Credit Cards - YoureApproved.org!
Personal Loans, credit cards from bad credit lenders including bad credit Loans - high risk unsecured bad credit cards - debt consolidation Loans - payday Loans!
-
Bad Credit Loans - Personal Loans - Credit Cards - Home Loans - Auto Loans - Credit Repair
Bad credit Loans and credit cards - personal Loans - high risk Loans - credit repair - free government grants - government auctions - police auctions - debt consolidation - filing bankruptcy
-
#9654; The Complete Online Guide to Free Government Grants, Business Grants and Government Loans
Government Grants - US government grants provides free government grants, business grants, Government grants.
-
Government Grants, Loans, Federal grants and Grant Money
Government Grants find out how to qualify for Free Business Grants, Government Loans and Free Government Money
-
US Government Grants - Online Directory for Info and Links.
US Government Grants - information on how to obtain free government grants.
-
Government Grants - Free Government Grants - Free Government Cash Grants - Cash Free Government Gran
Free Government Grants and Free Government Money from Government Grants. Guaranteed Government Grants.
-
After Bankruptcy Credit Solutions
Discover how to qualify for credit and Loans after bankruptcy in as little as 30 days!
-
Business Credit Secrets Revealed! - Get Business Credit Cards and Loans
Business Credit Secrets Revealed!
-
The Real Estate IRA: Use Your "Self-Directed" IRA, Roth or 401(k) + Loans to Buy Investment Property
Invest in Real Estate using an IRA, Roth IRA, or Individual 401(k) Plan. Buy Investment Real Estate like houses, condos, apartment buildings, foreclosures and land. Use Loans to leverage your investment. New eBook reveals the real estate information and l
-
bad credit home loan, refinance mortgage loan, cash loan, cash advance loan, california home loan, p
Online bad credit home loan, refinance mortgage loan, cash loan, cash advance loan, personal loan, debt consolidation loan, payday loan, bad credit loan, home improvement loan, second mortgage loan, online loan, unsecured personal loan Search.