Finance a New Car - Tips From the Experts

Tip #1 - Shorter Is Better

If you have to finance a new car, shorter is better. As Peter Valdes-Dapena of CNNMoney points out,

“There are serious downsides to this approach, though. Besides paying thousands more in interest, buyers taking out long car loans are more likely to find themselves in a financial bind if they need a new car again in just a few years. That could happen because of an accident or simply because a car owner is tempted by a newer model.”

One way to avoid this potential problem is to have a larger down payment so you have a smaller amount to finance on a new car loan. Another safeguard is to take the shortest loan term for which you can handle the monthly payments.

Tip #2 - Financing First

According to the editors at Edmumds.com, if you arrange financing before you go to the dealership, you are in a much stronger position to negotiate. This important step presents a number of advantages because it keeps negotiations simple in the dealership and allows you to shop competitive interest rates ahead of time. It also removes dependency on dealership financing and encourages you to stick to your budgeted amount.

Tip #3 - Comparison Shop

Shop around to get the best possible price on your new car. Check newspaper ads, dealer showrooms, and the Internet. Plan to negotiate as most dealers are willing to give a little from their profit margin—usually between 10 and 20 percent—to make the sale. If you don’t find what you want at the neighborhood dealerships, consider ordering your new car. There are several reputable car-buying services online.

Learn more about how to Finance a New Car and get a complimentary loan quote at Auto Loans In Seconds. It is a no-risk way to discover how much you could be pre-qualified to borrow toward a new car.

Mike Hamel is the author of several books and online articles about auto financing. His material is featured on sites like Auto Loans In Seconds.

Other articles by Mike Hamel

Car Loans For Bad Credit Buyers - by Mike Hamel

Need a car loan?

Probably - Over 61 millions cars were bought in the U.S. last year, according to estimates by Edmunds.com. Forty-four million were used cars. Seventeen million were new. Over half of these purchases required a car

Newest Articles in Loans

Bad Credit Secured Loan - Paves the Way For Easy Low Rate Finance - by Andrew Bake
If you have skipped or failed repeatedly to make timely payments in the past, then it is your credit score which gets affected. Since you are prone to risks, you have to face a lot of obstacles while deriving

Bad Debt Secured Loans - Nothing Bad Anymore - by Alec Recce
Introduction
Financial crisis is linked to money like the light to the sun. Sometimes back in the past, some financial adversities arose and due to some unavoidable circumstances you faltered in paying back your loans. Bad credits, CCJs, bankruptcy all

Cheap Payday Loans - Find A Way To Reap Instant Cash - by Celester Parker
It is a time of consumerism. Everyone looks for the deal which may cost them cheaper whether it may a long term provision or a very shorter one. For short term money provision, no individual likes to invest more

Cheap Loans - A Quick Guide - by Liza Mathers
People resort to loans for a variety of reasons such as a sudden emergency, an overdue bill, payment of previous loans, tuition fees, house renovations, buying a new car, or simply for quick cash. Understanding these nuances, there is a need for a guide to people who intend to borrow money from several lending institutions.

Personal Loans Online - Take Advantage Of Competitive Rate Offers - by George Bell
When applying for a personal loan, you want to know before hand as to how much time the lender will take to approve it and when will the loan finally come in your hands. Also you would like the