Most people have a dream car. It’s that vehicle they think of for months or years and aren’t really sure how they’ll ever afford it. Many people wait and hope for some sort of financial windfall that will magically put them into their dream car with ease. Often, this is as much of a fantasy as it sounds. The good news is there is a better strategy. By putting in a little extra work and planning, you may be able to afford your dream car without any major financial changes.

Secure a Private Loan

While nearly all dealerships offer in-house financing, it is usually the worst financing deal you can make. In-house financing gives the dealer every opportunity to include other charges or mark up interest rates. Dealers tend to focus heavily on monthly payments as a way to steer customers’ attention away from the finer details of the loan. Don’t let this happen. Read the loan documents thoroughly and be sure you aren’t overpaying for the vehicle.

This can be avoided if you secure outside financing before ever approaching the dealer. A bank or credit union is likely to offer a better interest rate and loan free of extra charges. They will also help you better understand the terms of the loan and only provide what you can afford.

Use Money From Other Vehicles

Having a trade-in can be a valuable bargaining tool and help ease the burden of a down payment. You can bring your old car to the dealer as a real trade, or for a slightly better value, you sell the car yourself and use the money as your down payment.

If your car has been in an accident, there are few other things to keep in mind. First, it is important to recover financially from an accident before considering an expensive car purchase. Your interest rates are likely to be going up anyway, and a new car can push them further. If your car is totaled, however, this can be an opportunity for you. Work with your insurance company to settle an amount you can put toward your new car.

Make A Savings Plan

Many people shy away from a vehicle purchase they really want because they are sure they won’t be able to afford the monthly payment. It is actually common for customers to walk into a dealership with very little preparation or money to put down. This is one of the worst things you can do for your budget. Most car salesmen are happy to see customers with no down payment and limited research. They can manipulate those customers backwards and forwards, and they will. Often a dealer will negotiate an affordable monthly payment, but the costs in interest for a longer term loan can easy make a car many thousands of dollars more expensive than it should be. Pay attention in your negotiations, and make sure that you’re getting something you can afford.

A good rule is to walk into a dealership with no less than 20 percent of the vehicle price as a down payment. If you don’t need a new car immediately, then taking four to six months to save up this extra money can really pay off. Planning and budgeting is crucial, and the money should go into a savings account where you will be less likely to accidentally spend it.

Prepare For The Future

 It is also important that you prepare for after you obtain your dream car. Have a regular maintenance schedule with a trusted mechanic, and plan for the future. Hopefully crashes will be avoided, but you will want to have a pocket of money saved up in the case that it does happen. You will also want to have a mechanic you trust, like those found at Chehalis Collision Center, who can help you get your car back onto the road.

By having the right plan and financial preparation, you don’t have to wait until you win the lottery to buy your dream car. Even rather expensive cars can be affordable with the right planning, budgeting and shopping around for the right deal. Never go to a dealer unprepared. A real car buying plan can take months of research to prepare, but it is worth the time invested.