The Art of Mastering Cars

Guide to Choosing Car Dealer Finance Once you’ve negotiated a great deal on your new car, the hard parts over, right? Wrong! Sometimes the financing portion of the purchase is more difficult than the negotiating part. That is, if you’re not prepared for it. Continue reading for some tips you should follow to make the car finance process easy. What information should you know about car finance? Let’s take a look: The Interest Rate Your rate is an important factor in your monthly payment. If the dealer charges you a low rate, your monthly installments are bound to be low too.
Cars – Getting Started & Next Steps
There are a number of things that will affect your interest rate. One of the factors that will affect the rate is your credit score. Before starting to shop for a care, get a copy of your credit report. You can know whether or not you are charged a fair interest rate based on your credit score.
Smart Tips For Uncovering Dealers
Term of the Financing Another important thing to consider is the term of the loan. In the past, loans were usually 36 or 48 months – that was as long as they got. However, with new, more expensive cars in the market, dealers are offering long term car loans. Today, it is common to find a loan whose term extends to five years. There are even dealerships that are offering long term loans extending to 8 years. It is important to know about dealership financing to avoid getting a bad deal at a dealership. The interest rate that the dealer should charge you should be in line with your credit score. The term of the car financing should also be carefully considered. There is never an instance when financing a car for 96 months is a good idea – never. If you need to finance a car for that long to afford the monthly payment, then you can’t afford that car! With the many vehicles available at the dealership, you can easily find one that you can finance for a reasonable term instead of sticking to one that will leave you paying installments for over five years. Sometimes, the salesperson will ask you, “how much would you like to pay for this car?” This is a trick question that you should not fall for. When you indicate the payment that you will be comfortable with, the salesmen will have a ground on which to start profiting from you. If you are not careful, you can end up agreeing to a deal where you do not know the interest you are being charged, how much you will be paying for the vehicle, the amount the dealership is offering for trade-in and other important information. Refrain from getting into any payment deal before you have researched well and determined how much you are ready to pay for a car.