Buying a car isn’t something you do everyday. It is a tedious process that takes a lot of time, patience, and money. In order for you to get the best deal on your and potentially save a lot of money, you should adhere to the following tips.
Tip 1. Review your credit – The worst thing you want to do is buy a car with a bad credit score. Before you decide to buy your car, make sure you get a copy of your credit report. If you have a high enough credit score, you might qualify for special dealer incentives and lower interest rates. If your credit score isn’t up to par you should take a few months to improve your credit score. The money you will save by buying with a higher credit score is worth waiting a few months. Someone with excellent credit, a score ranging from 720-850 can get a car loan for as little as 5.1% APR. In contrast, someone with the absolute worst credit score of 500-589 can pay as much as 15.8% in APR.
Tip 2. Purchase a used car – Yes it’s true, the unique smell of a brand new car is very aromatic. But, at the same time, you can save a whole bunch of money by simply buying a used car. When I talk about a used car, I’m not talking about some old beat-up clunker. I’m talking about a car that’s barely used; a car that almost new. You can save a lot of money by simply buying a car that’s a few months to a year old. As soon as a car is driven off the lot, it loses money. Be smart and purchase a car that is used.
Tip 3. Get a CARFAX history report – It is important to check out a car’s history. Nowadays, most dealers will include a free CARFAX history report for the car you’re buying. If a free history report isn’t included, don’t be cheap. Pay the $20 fee and order your CARFAX history report. In the CARFAX report, you will find valuable information about the car you’re about to purchase, such as: number of owners, its recent locations, accident reports, and “lemon” indicators. The last thing you want to do is purchase a flood vehicle.
Tip 4. Get a good loan – The best way to purchase a car is with cash. If you’re like the majority of car buyers, you will have to take out a loan. Look around the internet for a good loan. There are thousands of banks, online lenders, and credit unions that are willing and ready to give you the loan you need to purchase your car. Visit sites like Bankrate.com to find lenders and their rates. Once you’ve found a good deal, always make sure to put down as much money as possible and to choose the shortest loan period. You don’t want to pay for a car for the next five years. Once you’ve been approved, take the paper work to the car dealership. The rates you get from a bank or online lender is almost always lower than that you would’ve received from the dealer’s financing office.
Tip 5. Research! – With the internet on your side, you have no excuse for not negotiating and getting a good deal. Before you step foot inside a dealership, make sure you have done your research. Find out the car’s MSRP, Kelly Blue Book price, and its other details. When you go to the dealership, make sure you bring this information along with you. Car salesman will often try to get the most money out of a buyer simply because they go unprepared to bargain.
Remember to use these tips the next time you purchase a car and you will save hundreds, if not thousands of dollars on your next car.