Buying a New Car? Take These Financing Tips

Many years ago a car was a big investment and one expected to keep it for many years. Nowadays, for the most part, cars are treated more like shoes, still a big investment but more apt to be traded off every year. In light of that, buying a car, new or used, is pretty much a streamlined process. But you still need to be vigilant when it comes to the car you ultimately purchase and how you finance that purchase.After figuring budget and features, pair the two upYou know what you can afford to pay, you know what you need your new car to do. So, now you need to find the models that match up nicely with both. Keep an eye out for manufacturer recalls. You might want to check consumer websites or magazines to research a specific model and its cam belt situation. Some car models have expensive cam belts, and if they fail, they can ruin your engine. Beware of cars that only have manufacturing run of a year or two. Spare parts could be hard to find and very expensive.Shop diligently for a new carYou may want to consult family members, friends and colleagues. They may be driving a car you like, or they may have information you have not come across. Reliability, fuel consumption and maintenance costs are worth careful consideration. If you are in the market for a used car, all the better. Just be sure the mileage is somewhere under 100,000 miles. You do not want to buy the problems of the previous owner.Once you have settled on the make and model, go for pricingResearch various models and the range of cost for each. Check consumer magazines and websites for price comparison tables. You can even find calculators online that will help you figure taxes. Do not forget that there are dealer prep fees and other little add-ons that you will not discover until you get into the showroom. You will want to keep your eye out locally for holiday sales or special discounts, sometimes good deals are to be had.Once you have car at a certain price in mind, go for financingThe best possible move is to set up financing before you set foot on a car lot. Never have the dealer arrange your financing. They get a cut and the loan invariably will cost you more than if you do it yourself. If you have a blank check in hand when you finally get to the auto dealership, your deal making is going to be a lot easier. Never tell the dealer the exact amount you have to spend. Do not even say that you can spend up to a certain amount. The dealer will make sure you do spend up to that certain amount.Sometimes online lenders have the best financing dealsYou will want to check you credit scores before you go shopping for finance. You can get them free once a year. Approach a bank or credit union with whom you do regular business for the loan. However, many lenders are available online. They often offer deals that beat the more traditional brick and mortar lenders. You can even find car loan brokers; they will take your basic information and then do a quick research for the lenders who can best fit your car financing needs at the interest rates and repayment terms you want. Online financing forms are extremely easy to complete, just be sure the site is secure. And be sure to have lots of fun, take as many test drives as you can.