If you are in the market to buy a new car you might be wondering what kind of car is best for you. It is hard to know at what price point you should buy, how much of a loan you should take out and so forth. Here are some things that you should know about buying a car and getting an auto loan so that you can make the best decision possible for you:
1. Find Your Own Lender Before Your Shop
One of the biggest mistakes people make is not finding a lender before they go shopping. You might do a loan calculator on the Internet and think that those numbers will be the same numbers you will be given. This is not necessarily the case. There are so many factors that go into how much the bank will loan you, and the interest rate you will be given. Thus, you could be going shopping with a price point in mind that is not realistic.
Additionally, if you use a dealership they might try to have you do in house financing with them. Generally, you will get a better deal if you go with a bank or credit union that you are already a part of.
This is why it is best to do your research before you shop. You will have a better idea of what car you should get and how much your payments will be.
2. Be Realistic About Extra Expenses
When you see the initial price of the car know that it is rarely the final price of the car. For example, if you are buying from a dealership, the ticket price will be the initial price. On top of that you will have dealer fees, registration, taxes, licensing, and so forth. This could add on hundreds, if not thousands of dollars.
Even if you purchase a car from a private seller you should know that there will be extra costs. You may not have dealership fees, but there will still be title and registration as well as insuring the car.
Thus, if you have a price point you cannot go above you should find a car with a ticket price far below that number so that when all the fees are added, you are still in the budget.
Another expense you should be aware of is insurance. The more expensive the car, the more expensive it will be to insure. So before you purchase a car, make sure you have budgeted in how much you are willing to spend on insurance.
By knowing these things you can be confident about buying a new car. Contact a company like US Community Credit Union for more information and assistance.
