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Car Loans
How to Save Money When Buying a CarBy Catherine
BillSavings.com Brief:
There are some very simple ways to save money when buying a car. Take some time to research before heading out the door and you could save hundreds, sometimes thousands, of dollars. Know your credit history, shop around, and negotiate for the best price. These are ways to get good car deals.
When buying a car, there are all kinds of ways to get good car deals. You do not need to be at the whim of some crafty salesperson. You do not even need to leave your house for most of the research it takes to be an informed consumer. Thanks to the Internet, you can sit in your comfortable and air-conditioned home or office and find everything you need to know before stepping on to a car lot. The car buyers who get good car deals are the ones who do their homework ahead of time. Saving tips Too many people spend more than they should when buying a car. They pay hundreds, sometimes thousands, of dollars needlessly. All it takes is a little time and effort and you could take advantage of good car deals. Here are few tips that can cut costs and save you more of your hard-earned money when buying a car. Review your credit history. This is something you should be doing regularly anyway, whether you are shopping for a car or not. Credit fraud and stolen identities are real concerns in our digital age and never has it been easier for hackers to ruin your previously solid reputation. You are entitled to a free listing of your credit report once a year and there are three companies who can access this information for you. All you have to do is check your credit report with each agency every four months and you should have a pretty good handle on what it lists and how high or low your credit score is. If you don't check regularly, start before you head out to the car dealership. Not doing so could be a huge mistake. Buying a car is directly related to your credit score and history. The lower your score, the more you will typically pay in fees and interest rates. The higher your score, the more likely you are to qualify for special deals and good finance offers. Therefore, it pays to check your report and make sure there are no mistakes lurking within. Even a small inaccurate issue could cost you hundreds of dollars over the life of your loan. If you aren't sure which credit agency the lender will use to check your credit and you haven't been checking regularly either, then check all three at once. Take about an hour to go through each report and dispute items that are not accurate. All three agencies allow to dispute issues right there on your website. If you have a credit score above 750, then you are probably doing well enough to qualify for good rates and deals. Don't be afraid to negotiate a good price and loan for your car. If your score is low, consider waiting a few months in order to boost your data and receive better financing. Shop around. Unless you have stellar credit and a score in the upper 800s, you will probably not find the best financing deals at the dealership. Sometimes they offer zero percent financing and that's a great offer, but otherwise you'd do best to look elsewhere first. There are online auto lenders who can offer you lower rates than almost anywhere else. It's also convenient and time saving to be able to work out the figures right there from your home or office, comparing fees and rates, before heading out to the car lot. There are also several websites that can compare multiple lenders at the same time. Since you already have your credit score handy, you can check rates using online calculators without multiple inquiries into your credit history that typically lower scores automatically. You simply fill out the online form using that particular company's rate guides and most often receive an answer via email within an hour or two. If the company has favorable terms and you are approved, they will typically mail you the check. You can make it payable to the seller and take it directly to the car dealership when buying a car. If you decide not to make the purchase, you simply shred the check. These checks are also usually within a certain range that allows you to negotiate for less than the purchase price. Just because you were approved for $50,000 doesn't mean you have to pay that for an automobile. Always try to get a better price at the dealership. Don't be afraid to negotiate with the salespeople. They are trained to get the most for their boss, the dealer, and you should be just as determined to get good car deals for yourself. Make them work for their commission. If you've been online or to other sellers, use the information you've discovered in order to get the best deal possible. Armed with that information, you should feel empowered to haggle confidently. Look up the listed price, MSRP, and invoice of the car you want online with an unbiased site like Kelley Blue Book. Don't let an accomplished sales person get the better of you when buying a car. 8/12/2008
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