Because cars now cost tens of thousands of dollars, most of us
pay for them the same way we buy houses: we have a financing
institution pay the bill and we repay the financer in
installments that include the price plus interest. Automotive
sales prices have risen at an unprecedented rate and many of us
have turned to auto loans and leases in order to afford the car
we want and need.
Higher prices for cars are partially due to the higher cost of
labor and materials, as well as the research and development of
fuel-efficient engines. Safety features such as air bags,
antilock braking systems, and reinforced structural components
also contribute to higher prices. But I believe that prices are
also influenced by the fact that many financing institutions and
dealerships have taken the opportunity to make inflated profits
by literally charging us "as much as traffic can bear" for auto
leases and loans.
Despite the high prices, many people do a good job a negotiating
down the price of their dream car. Yet many of those same people
just as quickly make very bad decisions on their auto loan.
Countless others include auto loan negotiations in their actual
negotiations for the purchase of a vehicle and quickly become
lost in the complexity of annual percentage rates versus
difference in trade, allowance versus months financed, or life
insurance versus payoff. If you are going to be a smart buyer,
it's important to realize the two can't be mixed. First,
negotiate the best possible deal on the car. And then apply the
best method of financing.
If you plan to pay cash, you have to know how much money you
need to buy a car and to know the tactics dealerships will use
to try to switch you to a auto loan. If you plan to finance, you
must first know how much auto loan you can afford and for how
long, before you know how much car you can buy. You must know
the best source and method of financing before you shop.
So, you need to shop around to find out how much you really can
afford each month. Once you have determined how much you can
afford, determine the total "available" cash you will have to
purchase a car. Determine how many months you want your auto
loan to be, and consider the addition of life and health
Getting The Best Deal On Personal Loans
A personal loan is a sum that any adult individual borrows to fulfill his financial requirements. There are many purposes for which any individual can take a personal loan. Personal loans can be used to provide funds to buy a car, pay for your dream...read more
How To Get An Auto Loan With Bad Credit?
Copyright 2005 Dean Shainin
You have found the car of your dreams, but you know your credit
is not the greatest. You ask yourself, "How can I get an auto
loan with bad credit?"
You are not alone. Thousands of people ask the same...read more