How to Get the Best New Car Deal
If you have to get a car loan to pay feel you car then it goes without saying that you need to choose the cheapest loan in order to get the best deal on your new car. After all, what you repay to the bank is the price you really pay for your vehicle.
For instance, a $30,000 car loan over a seven-year term at an interest rate of 12% means that you will repay a total of $44,044.44. On the other hand, if you obtained the same loan at an interest rate of 11.5% you would make total repayments of $43,397.98. So, even the smallest difference interest rate can make a significant difference to the price of your car.
But there are plenty of other things you can do to make sure you get the best new car deal too. Apart from the obvious price negotiations and car loan negotiations there are some simple steps you should follow so you get exactly what you need and exactly what you pay for.
* Research your needs carefully. When choosing a new car it is easy to fall for the temptations offered by the various manufacturers. Things like turbocharged engines, paint protection, rust proofing and satellite navigation. You need to sit down and carefully think about everything you really need in your vehicle so that when it comes time to negotiate, you will not be talked into things you do not need or will not use.
* After you have chosen your particular model, check around the various dealerships to see what prices they are offering and if there are any special deals on the table. Some car manufacturers offer incentives to some dealerships at certain times of the year and you might be in a good position to take up a discount offer especially if you are buying at the end of a month or the end of the financial year.
* Consider how you will be using your vehicle. If you intend to do a lot driving on country roads or dusty dirt tracks, you might want to consider extended warranty options so that you will not be faced with hefty repair bills after your statutory warranty period is over. A few thousand dollars spent on an extended warranty could be easily repaid in the longer term if you plan far enough in advance.
* Make sure you have your finance preapproved before you arrive at the dealership. This is important, not only to ensure that you get the cheapest car loan on the market, but also so you will not fall prey to the immediate loan approvals that some dealerships can negotiate for you on the spot. Don't forget, dealers can make as much money through negotiating a finance package as they do in the actual sale of the vehicle itself, so make sure you are well prepared before you walk through the door.
Buying a new car is an exciting time, and negotiating the right car loan is a great first step before you visit the dealership. But simply following the above 4 points will put you in a much better position to ensure that you get the best deal possible.
For instance, a $30,000 car loan over a seven-year term at an interest rate of 12% means that you will repay a total of $44,044.44. On the other hand, if you obtained the same loan at an interest rate of 11.5% you would make total repayments of $43,397.98. So, even the smallest difference interest rate can make a significant difference to the price of your car.
But there are plenty of other things you can do to make sure you get the best new car deal too. Apart from the obvious price negotiations and car loan negotiations there are some simple steps you should follow so you get exactly what you need and exactly what you pay for.
* Research your needs carefully. When choosing a new car it is easy to fall for the temptations offered by the various manufacturers. Things like turbocharged engines, paint protection, rust proofing and satellite navigation. You need to sit down and carefully think about everything you really need in your vehicle so that when it comes time to negotiate, you will not be talked into things you do not need or will not use.
* After you have chosen your particular model, check around the various dealerships to see what prices they are offering and if there are any special deals on the table. Some car manufacturers offer incentives to some dealerships at certain times of the year and you might be in a good position to take up a discount offer especially if you are buying at the end of a month or the end of the financial year.
* Consider how you will be using your vehicle. If you intend to do a lot driving on country roads or dusty dirt tracks, you might want to consider extended warranty options so that you will not be faced with hefty repair bills after your statutory warranty period is over. A few thousand dollars spent on an extended warranty could be easily repaid in the longer term if you plan far enough in advance.
* Make sure you have your finance preapproved before you arrive at the dealership. This is important, not only to ensure that you get the cheapest car loan on the market, but also so you will not fall prey to the immediate loan approvals that some dealerships can negotiate for you on the spot. Don't forget, dealers can make as much money through negotiating a finance package as they do in the actual sale of the vehicle itself, so make sure you are well prepared before you walk through the door.
Buying a new car is an exciting time, and negotiating the right car loan is a great first step before you visit the dealership. But simply following the above 4 points will put you in a much better position to ensure that you get the best deal possible.
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