If you are looking to replace your old worn down car or you are a new driver you need to ensure you are aware of all the ins and outs of purchasing automobiles. You need to be weary of car salespeople as they can easily spot first time buyers. This can be a problem as they may try and swindle you into extras you don’t really need. You may be vulnerable to a bad deal if you are not knowledgeable about the automotive industry. Most first time buyers are not exactly experienced when it comes to cars, this makes them an easy target for dodgy salespeople. If you want to avoid being conned into a bad deal then you need to keep your enthusiasm under control.
What You Need To Know:
How much money do you have?
When buying a car the first time it is quite an exciting experience. You may become overwhelmed with anticipation and forget to take into account the important things such as how much you have in your wallet. You need to work out your finances and make a note of what you are able to afford each month. Remember that you need to be realistic about how much you can afford to shell out. There are added expenses you need to cover when it comes to purchasing a car. Not only will you need to pay for gas but there you need insurance coverage, MOT check ups and much more. Take into account your living expenses before you make any kind of big commitment. You need to ensure you are still able to pay for your monthly expenses such as rent and bills.
When you finance a new or used vehicle you need to take into account the loan terms. The terms may be bewildering at first but they do hold significance. Determine how long you want to get locked into a loan. There are different lengths time you can keep a loan for and all of them have different APR percentages. If you commit to a 60 month loan than the interest will be a lot higher than if you were to commit to a 20 month loan.
Ins & Outs Of Finances
A lot of first time car buyers will finance the first vehicle they invest in. You will find that you will have an easier time financing a car if you have a decent amount for a down payment. It is recommended to have at least 10% of a down payment when purchasing a new car. If you do not have a big lump sum for a down payment then it is best if you look into buying a used car.
There are numerous ways to finance a vehicle, however the best option is to do this through a dealership. A dealer will not finance you unless they are offered “in-house financing”. Dealers network with various lenders and will simply pass on your application.
Most lenders will offer you an affordable contract so you can make stable on-going payments. Every single dealer will earn a commision for a new car buyers contract. Ensure you are prepared when you walk into a dealership attempting to invest in a vehicle. Without the right know how you could be left in an awkward situation.
Author: Alan owns a classic car because the insurance is cheaper when buying classic insurance.
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