Financing Tips

If you are among the lucky few who can pay cash for your brand new vehicle, you likely do not worry about financing, your credit score or who is offering the best interest rates on auto loans.

If that does not describe you, however, all those things should matter to you a great deal. In fact, keeping an eye on your credit score and knowing who is offering the best financing options is crucial information to have before you ever walk in the dealership door.

Today more new car buyers than ever before are looking for financing options offered outside the dealership. This has less to do with the reputable nature of dealerships and more to do with being a savvy consumer. At one time was the difference between the rate offered at your local bank and the rate available at the dealership were pretty close, if not exactly the same. These days the interest rate you get down the street might be quite a bit different than the rate the dealer offers you, especially if you have excellent credit.

There are banks, credit unions and an assortment of lending institutions looking to help you finance your next new vehicle purchase. This will likely lead dealers to offer more competitive rates, but so far, this has not been the case.

Leasing has become an ever more popular option for those looking at a new automobile. With a lease you might get a better monthly payment but you end up with no vehicle and no end to the payments. You don’t have to pay maintenance fees and you get a new vehicle at the end, but the payments continue.

Now more than ever it is important you find the best deal on the best way to get yourself behind the wheel of a new automobile. There are a multitude of ways to get yourself a new vehicle, but only one of those ways is going to be best for you, so do your homework.

Start by deciding just how much you can afford. Know what your limits are and don’t reach beyond your means. It will only end up costing you in the long run, and possibly damaging your credit score.

Once you know what you can spend start looking at a variety of makes and models. Don’t let brand loyalty stand in the way of you getting the vehicle you want at a rate you can afford.

Dealerships are eager to make a sale. If you have great credit, and you better have great credit if you expect to buy a new car these days, the dealer will likely offer you anything to close the deal. Stay strong and don’t fall for gimmicks. Set your limits and stick to them no matter what the salesman might dangle in front of you.

Above all else, protect yourself! Don’t get in over your head, don’t pay more than you can afford and don’t take on payments that will make your life a struggle. If you weathered the recent economic downturn with excellent credit, keep it that way by buying a new vehicle you can actually afford. You will thank yourself later.

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