Smokin Property

Cars are very expensive, not only is there the purchase price but you also have to keep in mind that there is the insurance fee, maintenance costs and most states have an annual registration tax, not to mention the gas prices. Yet most of us need a car for getting to and from word, for our groceries, taking the kids to basketball practice or ballet…

When it’s time to buy a new set of wheels, you should first consider what you really need before paying the dealer a visit. Find out if you really need that pickup or SUV which both cost a lot more in both purchase price and insurance than a regular family car. Do you really need all those fancy options which bloat the price? Also determine your budget clearly in advance and don’t let the salesperson push you over that budget even the slightest.

Once you arrive at the dealer and you start looking at some cars, a salesperson will no doubt start convincing that you need all those bells and whistles and that you can easily afford that larger model. They will make the car seem affordable by talking in terms of monthly down payments instead of telling you the full price of the car. Sure, only $449 sounds like something you can afford but keep in mind that it’s $449 every month for many, many more months to come. Also compare that figure that you will have paid when you finished the down payment to the actual cost of the car… you might be in for a real shocker.

To help you stick to your budget and to get the best interest rates if you do need a loan, go shopping around and get a loan approved prior to going to the dealer. That way you can often get much more interesting deals by making the different banks compete. Also never take the first offer you get and negotiate your way into more interesting rates. It also allows you to go to the dealer and see if they can make you an even better deal while having an ace up your sleeve.

Always take the shortest payback period you can reasonably afford. Prefer 3 to 4 years over 6 to 7. The lower down payments may seem attractive but you will save seriously on interest during the loan life.

Also consider taking a collision and comprehensive insurance policy for the duration of your loan. You don’t want to risk losing the car in an accident and still having to make several years of down payment. You can get a serious reduction on the insurance fee if your car includes safety features like airbags and anti-brake locking systems.