4 Tips to Purchase a Car the Right Way
New cars, today, have better safety features and more tech features than models from a few years back. And let’s face it: trading in your beat-up old car for a shiny new model is pretty enticing. But many Americans make big, expensive mistakes when buying cars, costing them thousands of dollars in the process. Here’s how to purchase a car without getting over your head in debt or having to pay more than you need to.
Get Preapproved for a Loan Before You Visit a Dealership
Not only will you know exactly how much you can afford, but you’ll also be able to spot problems with your credit score. If you find that your credit score is really low, you may want to take some time to build up your credit score. One thing to know: there are a number of shady lending institutions out there that will promise to offer you a low-rate loan, but load it up with fees and charges. So, make sure to get a loan from a mainstream financial institution.
Keep It Simple When You’re at the Dealership
Don’t reveal too much to the dealer. They will likely ask you how much you can afford to pay and if you are looking to get a loan through them – don’t answer these questions. Just keep it simple and tell them you’re just shopping around for a car. Once you find a model you like, ask them what it costs and then you can talk about things like trade-in deals, interest rates, and more. Don’t be afraid to walk away if the dealership is quoting you terms that seem a little unreasonable.
Don’t Get Add-ons at the Dealership
The dealership will likely try to sell your things like tire protection plans, gap insurance, extended warranties, and more – while the coverage is helpful, the cost of these add-ons is usually marked up by the dealer. So, don’t opt for any extras.
Don’t Get a Long-Term Loan
Getting a long-term loan can be enticing because your monthly payment will seem more affordable. But, a long-term will increase how much interest you’ll need to pay over the course of the loan term. Avoid spending money unnecessarily on interest, especially if you can afford a slightly higher monthly payment.
