Getting The Best Deal On A New Car Loan

Getting The Best Deal On A New Car Loan

by

elmer8514b

When you’re ready to buy a new car, what can make the difference between you being able to afford it or not is the type of financing you get. Many first time new car buyers make the mistake of deciding they want a new car, looking at their budget a little bit to see if they can afford it, and heading off to the dealership.

While you can get financing through the car dealership, it’s not always the best option. It might be easier to get dealership financing for a new car purchase than through a different lender if your credit isn’t perfect, and it does simplify the process of buying a new car because you do everything at once. But using dealership financing often means you’ll end up paying more for the car than you would if you paid another way. You have to figure up your budget first and determine the maximum payment you can afford each month. Don’t forget to call your insurance company and figure in the added cost of insurance into your budget before determining this payment amount. You’ll have to have full coverage insurance while you’re paying for the car, and full coverage on a new car is much higher than full coverage on a used car. The cost of the insurance will also vary depending on the type of car you choose, so get these numbers and then figure your budget. And no matter how bad you want that specific car, if the money you have left over after other necessities is the same amount as the car payment, wait and save more for a down payment or choose a cheaper car. You have to have money that’s not allotted for specific bills each month, if not for an emergency fund or regular savings, just as a cushion against misfortune. So don’t be overly optimistic with the amount you can actually pay each month and then regret it later when money is too tight and an unexpected expense comes up. So now that you know the car you want and are sure you can comfortably afford it, you’re armed to get the best deal on a new car loan. So shop around for one! Go to your bank and talk to them and see if you can get preapproved for a loan. If you can get preapproved for a good new car loan, then you can shop for a new car stress-free. You’ll know your exact budget and can focus on what you want within it without worry that your financing will be rejected at the dealership. Credit unions usually offer lower rates for members on loans than banks, so try different sources and shop for the best rates. If you feel you might get a better deal at the dealership, that’s certainly an option. They’re especially helpful for first time new car buyers. Just be aware that the best rates are reserved for new car loans that are paid back fast in just one or two years.

The author writes for

Vital Motion

, an online car resource. Check out its

car buying tips

section and learn how to get a good deal on a new car.

Article Source:

ArticleRich.com