Debt Tips   

New Cars

Avoid new cars

Because cars are made better now than they ever have, try not getting a new one if you need to change existing spending habits. Trying to live a more debt free lifestyle means cutting corners if you need to. Buying a car even t 2 years old can easily save you 25-40%.

Negotiate the price not the payment

If you are going to purchase a new car, understand that payments can be manipulated so that practically anything is affordable. Sales people will always try to get you talk about payments instead of the cars actual price tag. If you want to be a good negotiator – talk price not payments. Your monthly payment amount will take care of itself as long as you negotiate the car’s actual price instead of how much you want tour monthly payments to be.

Choose your model and make with care

You obviously want to purchase a car that is within your price range, but you should not ever forget to consider other costs that come with a certain type of car either. You will also want to consider insurance, gas efficiency, repair costs and general maintenance prices. Some cars simply cost more to insure and repair than others. Even basic upkeep comes with price variances from model to model. For example, a car with a bigger engine will burn more gas and it will also cost more to replace car parts if a car is perhaps an import and such. Be sure to check out the latest issue of Consumer Reports before you head to any dealership. Consumer Reports is a great magazine that covers all aspects of consumer buying and it even rates cars on price, performance and general efficiency.

Look at the dealer’s invoice price before you shop

You can find these at many websites on the Net these days. You can even check out new car guides such as Consumer Reports and more. After all, your objective is to pay no more than 3% over the dealer’s invoice on any car you want to buy. Do not forget to get the dealer’s invoice price of the options you want on the car as well.

No extra fees

One of the main ways a dealer makes money on selling cars is to pad prices with extra fees like documentation, advertising and such. Get rid of the ones you can, understand the ones you cannot get rid of, and be certain that you check the final contract to eliminate any fees that may all of the sudden show up.

Get an auto loan approval before you shop

Most people who buy cars just head straight t the dealership and select a car then get financing right there. You do not have to. In fact, if are have an established relationship with your bank (where you have your household accounts), check to see what rates they offer first. Another great idea for car financing is your local credit union. The financing you get at a dealer is typically a company the dealer is in some sort of association with. They may even get kick-backs if the dealer supplies them with a lot of new customers each year. Even if you do end up using dealer financing, it is important to understand how much you are able to borrow and what the rates are ahead of time so there are no surprises. If you know what you’re approved for ahead of time, you will most likely be a much better negotiator too. You will especially need to know this information in order to choose between low interest loans or rebates. There are online calculators these days that will allow you to decide between getting a lower rate loan versus a rebate.

(632)

Back to News Updates