All posts tagged auto financing

How Can I Safely Afford the Car of My Dreams?

by Carsurfer Admin on 2015/02/06 in Auto Financing with Comments Off on How Can I Safely Afford the Car of My Dreams?

Finally owning the car that you have always wanted can be a thrilling experience. However, that thrill can turn to fear if the cost of the car is ultimately more than you can afford. This is why you should account for the total cost of ownership and plan ahead for how you will handle the car payment if you suffer a loss of income.

Negotiate the Right Price for the Car

This concept is one that may be foreign to many people that don’t live in a country where bartering is commonplace but negotiating a fair price for the car you want should be a high priority for you. It is generally a mistake to think of the monthly payment when negotiating a car deal. Instead, make sure that you are getting the best price for the car. Afterwards, you can negotiate the length of the loan and your interest rate to find a payment that you can afford.

Put Money Down if Possible

Putting money down ahead of time increases equity while lowering the amount that you have to pay each month. This can come in handy if you lose your job or otherwise find that you need to get rid of the car for some reason.

Don’t Be Afraid to Trade the Car if Necessary

In the event that you find your dream car isn’t everything that you thought it would be, do not hesitate to trade it in. It is much better to have financial security as opposed to a fancy car in the garage. Besides, having the car isn’t going to be much fun if you can barely afford to put gas in it.

Look at the Value of the Car Before Buying It

The best way to know if you can afford your car is to find out how much it is worth ahead of time. This gives you a good idea if you can buy the car and still have an asset that has value several years down the road. Knowing this fact is important because cars are depreciating assets that lose value over time.

Don’t Forget to Think About Insurance Costs

In addition to paying for the car, you will also have to pay to insure the car. Insurance costs could run over $100 a month if you are buying an especially fancy model. Therefore, ask your Thomson Schindle Green Insurance & Financial Services Ltd insurance agent how buying your dream vehicle could impact the cost of auto coverage. Often, people are unaware of the extra costs that can be incurred after buying a new vehicle.

Do you want your dream car to be in your garage for years to come? If so, you need to figure all the costs of ownership and possible depreciation beforehand to ensure that you can afford it without going into financial peril.

Don’t Get Ripped Off – What To Know About Buying A New Car

by Carsurfer Admin on 2014/04/07 in Auto Financing with Comments Off on Don’t Get Ripped Off – What To Know About Buying A New Car

When buying a new car, you can spend all of your hard-earned money. However, this is a wise investment to make if you want reliable transportation for a long time. With this in mind, it is not easy to just go to a dealer and pick out a car and finance it. No, a buyer should know how to avoid common pitfalls. With this in mind, here are four things to avoid so you do not get ripped off when buying a vehicle.

Know the value

Without a doubt, when you walk into a dealership, you should know what car you want to buy. More importantly, you should know the true value of the vehicle. To do this, shoppers should go online and search for the prices of new cars. When doing so, you can find the value. Then, when walking into the dealer, you will have the upper hand in the negotiation process.

Negotiate

As mentioned, you will want to negotiate the price. To do this, you must first know the value of the car. Then, you should sit down with the salesperson and come up with a figure. When doing this, prepare for them to balk at the first tor second offer. Salespeople would rather make a sale than let you walk away. Once you come up with a price, you should try to nail him or her further down so you can save money.

Extras

Some employees will try to force you to spend more on features or products. Do not fall for this. For example, some dealerships will try to force people to buy a warranty. In reality, when buying a new car, this is not a good deal. Instead, you should politely decline their requests. Remember, if you want additional features or a warranty, you can revisit this later.

Really look at financing

When you use the dealership to finance a car, you will not always get the best price. To figure this out, you should first head to a bank or credit union to look at loans. Then, when you talk to the dealership, you will know what to ask for in a loan. Dealerships like Findlay Auto Subaru are great at helping people finance vehicles on a plan that’s affordable and quick.  Either way, while it is not a bad thing to use the dealership for the loan, you must explore all your options if you want to get the lowest interest rate.

With these four tips, you can find the best price on a used car. Otherwise, if you do not do this, you may get ripped off.

Should I Buy or Lease? 5 Ways to Arrive at the Best Choice for You

by Carsurfer Admin on 2013/12/18 in Auto Financing, Auto Leasing with Comments Off on Should I Buy or Lease? 5 Ways to Arrive at the Best Choice for You

Deciding whether to buy or lease a car can be a tough decision. Although a lease is cheaper, it may not give you the best value for your money. Here are five things to consider when determining whether to buy or lease your next car.

How Long Will You Want The Car For?

If you like to trade in your car every few years, a lease is certainly for you. Most leases run for two to four years. This means that you don’t want to buy something unless you plan on keeping it for five or more years. So, if you’re the type of person that needs a change every now and again, leasing is the way to go. If you want to find the perfect car that you’ll be happy with for ten years or more, obviously buying is a better choice.

How Stable Is Your Financial Situation?

Will you be able to make payments for the next five years on your car? If not, you should strongly consider leasing. According to car experts who specialize in auto repair in Edmonton, a lease is also easier to get out of because lenders relax their rules when another driver takes over the remaining portion of your lease. If you feel that you are in a position to make payments on a car, you can consider buying. Evaluating your financial situation for the future can be difficult because you can’t always anticipate losing your job, or your business going under. However, if you think events like this are likely in the future, leasing is a safer option.

Is It For Business Or Pleasure?

If you are getting a car for your company, a lease is the way to go. Your monthly lease payment can be written off as a business expense. If you are getting the car for yourself, you may want to consider buying it outright if you can afford to. You should also consider that you can take business deductions for depreciation if your company owns it outright as opposed to leasing it. The use of the car an really make a difference in your decision to buy or lease, so make sure you know what your options are before you go looking.

How Much Can You Afford?

Lease payments are typically lower than a new car payment. This means that you get more car for less. On the other hand, you don’t build equity in the car each time you make a payment. If your only option to get a new car is to lease, you should consider buying a used car instead. Choosing between buying and leasing will require you to examine your current financial situation. As discussed before, you can’t always predict how stable your finances will be in the future, however you can base your decision off of how your finances look currently.

How Much Do You Drive?

Many lease agreements restrict the amount of miles that you can drive in a year. Typically, you cannot drive more than 12,000 miles in a year. While you may be able to buy more miles, it is generally cheaper to buy a car if you need to drive more than 12,000 miles per year. Perhaps you don’t realize how much you drive, and maybe it varies depending on the day, week, or even the time of year. If you are unsure, you can talk to your regular mechanic about whether to lease or buy based on how much you drive. Many mechanics have digital records of how often you get your oil changed, so they can tell you how much you drive in a certain period of time, making it easier to decide whether leasing or buying is the way to go.

So, should you buy or lease your next car? That depends on your financial situation, how long you plan to drive the car and how much you drive each year. Once you determine how much you can afford and how you plan to use the car, you can make an educated decision for yourself. As you can see, there is a lot to consider when making this decision, but if you evaluate your current situation, you will probably find that either buying or leasing is the obvious choice for you.

Five Ways To Save Money While Buying a New Car

by Carsurfer Admin on 2013/10/30 in Auto Financing with Comments Off on Five Ways To Save Money While Buying a New Car

New cars often come onto the market with high sticker prices. This discourages some people from purchasing a new vehicle. A number of people in the market for a new car do not understand that dealerships have a large amount of control over the final price. There are five ways to save money when buying a new car.

1. Negotiate Everything

Anyone buying a new car should be prepared to negotiate when speaking to a dealer. Auto dealers want to make a sale in the moment. This often means dealerships are willing to reduce vehicle prices or make other accommodations. It is important to negotiate every expense including the fees and details in the contract since some are not strictly necessary or can be waived.

2. Visit Different Dealerships

It is best to visit different dealerships before starting negotiations. Buyers can often get dealers to lower prices or improve contract terms when mentioning there is a better offer at another location. Dealerships do not want to lose business to competitors. Some dealerships might even match advertised discounts or special offers from competitors.

3. Look For Outside Financing

A good way to save money is to get financing for the vehicle outside of the dealership. The financing dealerships offer often has poor or unfavorable terms. Anyone who already owns a vehicle can get fast financing through a company like eTitleLoan. Sites like eTitleLoan.com offer loans secured by an existing car title. The loans require no credit checks. Some auto title loans could be large enough to allow a family to pay for the new car in cash without any of the hassles of dealer financing.

4. Buy When Inventories Change

Dealerships offer more discounts and are more willing to negotiate when attempting to clear old inventory. Dealerships try to sell old inventory fast at the end of each month and after September when new models start coming in. Shopping and negotiating for a new car during these periods will result in noticeable savings.

5. Scrutinize Extended Warranties

Extended warranties are not always necessary or cost-effective. It is important to look at the terms of the warranty, what is needed to maintain the warranty and the overall cost. Some extended warranties actually cost more than standard maintenance and repairs for new vehicles. Additionally, complex terms can invalidate extended warranty coverage if repairs are needed.

Shoppers who are negotiating with a dealer need to be aggressive. This means being prepared to walk away especially when a better offer is available elsewhere. Some dealerships will lower prices or improve an offer just to rescue the sale.

Why Auto Loan Refinancing Makes Sense

by Carsurfer Admin on 2013/03/04 in Auto Financing, Uncategorized with Comments Off on Why Auto Loan Refinancing Makes Sense

Consumers have been refinancing their homes for years, keeping track of mortgage rates and seeking out new loans as interest rates fall. That sort of thinking can also be applied to auto loans, a consumer loan that can prove costly when rates are high. Unlike home refinancing that requires mounds of paperwork, auto loan refinancing can usually be completed within mere days.

Auto loan refinancing may make sense for you provided the following has taken place since you took out your loan.

1. Your credit history has strengthened.

Some car shoppers get saddled with high interest rate auto loans because their credit scores were low. Interest rates for car loans are based on a number of factors, with your credit history a huge consideration. If your credit score is now very good or excellent, then you should qualify for a lower interest rate loan. Obtain your credit reports from AnnualCreditReport.com and pay the fee to get your credit score.

2. Loan rates have fallen.

Not only has your credit outlook improved, but loan rates on cars have dropped. Perhaps you got a loan through a financing company and have since joined a credit union. Your new financial institution may offer low-rate refinancing, enabling you to save money.

3. Your finances are better.

Besides an improved credit score and lower interest rates, your personal finances may be better. If that is the case, you may be able to turn that six-year new car loan into a two- or three-year used car loan. You can do this by paying off part of the old loan and refinancing the balance. Your monthly rate may actually come in higher, but you may be able to shave a year or two off of payments, saving you money.

4. Consider your home equity.

Some consumers have discovered that paying off a car loan with their home equity makes sense. Under this arrangement, you take money out of your home and use it to pay off your car. The advantage here is that your monthly payments are lower. The disadvantage is that it may take you several years longer to pay off your car.

Refinance Considerations

Inasmuch that auto refinancing can lower your payments, reduce your interest rates and save you money, there are so matters to consider as you shop for a loan. Keep these in mind as your explore your options.

First, what is your car worth currently? Unlike homes that usually appreciate, cars lose value. Therefore, there is a possibility that you owe more money on your car then it is worth and that means you will have to come up with some cash to make up the difference. Check out Kelley Blue Book for its current value. Contact your lender to find out what the pay off amount is for your current car loan.

Second, some loans have built-in prepayment penalties that must be handled before you can get out of a loan. You may be required to pay back the full amount of the loan plus interest to get out of the original loan despite paying if off ahead of time. Familiarize yourself with your sales contract and its financing clauses.

Another Approach

If you are turned down for refinancing or find that the savings are not as robust as you had hoped, there is another option: paying down your current loan as quickly as possible. Here, you will still make your monthly payments, but you may be able to double up your payments or at least add more payments during the year. Only take this option if you believe that you can afford putting out more money each month in a bid to put your auto loan behind you.
Author Information

Jenny Willis is a professional blogger that enjoys providing consumers with personal finance advice. She writes for Purechecks.com, a leading check printing company of designer personal and business checks.

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