Financing a car the smart way

Getting the most out of a deal is what everyone wants, but not what everyone gets. There are many ways to get the best deal when buying a car. Whether you’re looking at a brand new car or a used one, being frugal surely has its benefits.

Image source: carmudi.com.ph
Determine your budget and be strict in implementing it. For sure, you have a preferred model and you’ve already looked up its price. Look for better deals for both brand new and used units. Some models depreciate quickly, thus making for a good buy—so be certain to watch out for those. Steve Sorensen suggests that once you’ve seen the prices, decide if you’re getting a new car or a secondhand model. This will determine the insurance and maintenance costs.

Image source: carmudi.com.ph
Examine ownership costs of the car of your choice. Many cars may appear to be inexpensive. However, their insurance costs and overall maintenance can be over the top. Expect this from brands who are great with financing. Don’t get sucked in by low interest rates and low down payments. Before heading to the dealership of your choice, research all about the possible discounts you can get. According to Steve Sorensen, you can beat out a dealer by using negotiating skills.

It’s best to pay most of the amount in cash, so that means you should have a bulky savings prior to purchasing a car. Taking out a loan can be risky for your credit score, especially if you have uncertainties when it comes to paying it off on time.

Steve Sorensen here. Certified Public Accountant and financial advisor from Colorado. Follow me on Twitter for quick updates.

Comments

Popular posts from this blog

Swindler’s list: History's biggest swindlers

Cryptocurrency and what lies ahead for banking and finance