March 13th, 2014
When looking to purchase an automobile, you have a bevy of options to choose from. From make and model to the color of the upholstery, the car buying game is a diverse one. Along with choosing a ride that looks cool and gets you where you need to go, you will also need to consider how you are going to finance this new purchase. Finances are a tricky road to navigate for a car, so it is important you are smart with these decisions. Negotiating a car loan is an art form, and the way you go about it can determine the price and rate of your loan. It is an intricate process and there are several methods to try. Your negotiating skills will come in handy here, but it doesn't hurt to have a bit of background knowledge when figuring out your financing. Here are a few things to keep in mind to get the best options on a car loan:
Negotiate overall price
When searching for an affordable car loan, it is important to keep your eye on the overall picture. Dealers may try to offer you fancy payment plans in order to get the most money out of you, but you should avoid these. When negotiating the price, focus on the overall price of the car, as opposed to how much you will pay each month. Dealers may ask you how much you are willing to spend each month, but try to steer the discussion away from this. Dealers will try this sales tactic because they will set the maximum for each month. This in turn will cause your overall price to skyrocket. It is best to just focus on the overall cost. By honing in on an encompassing price, you wont be subjected to overly expensive monthly payments.
Get a shorter length
In addition to the price of your car, you should also focus on the length of the loan. Paying back a loan can be a massive hit to your finances, and you don't want the expense to run your budget into the ground. A good time frame to focus on for a loan is four to five years. This may seem like a long time to be making payments, but you never know if you will want to get a new car in five years or how your finances will turn out during this time.
Skip the extras
When getting down to the nitty gritty of your loan, your dealer may offer a few add-ons for your new vehicle. Paint protection, tire insurance and extended warranties may be a few options they throw at you. They may even sweet talk you by saying they can knock a $100 off your truecoat protection. These add-ons are just ways for dealers to increase your loan amount, so it is best to skip these extras.
Car insurance for your vehicle is important because you never know if you are going to get in an accident an auto insurance can help protect your car. When negotiating your loan or even looking at cars, keep insurance in mind because it will aid you in case anything goes wrong.