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Buying Your Car loan

Individuals planning to buy a car or any vehicle prefer to “prepare” before they actually buy their vehicle. Many companies offer auto loan finance and car financing facilities so potential buyers can avail their transport, and if they have poor or bad credit rating, it is possible to buy their car through bad credit auto finance or bad credit car finance programs. Some companies specialize in providing finance to individuals having low FICO scores.

Such companies typically provide bad

car financing and bad credit car loan programs, to make it possible for the average American to own what he or she desires – the “perfect” car. Since many options are available due to proliferation of online car loan companies, it is recommended to search for best car loan rates. Car financing through car loans is not that difficult to avail, if you know exactly what to look out for, and how to evaluate your options. The following information can help you “prepare” your case, before you actually sign your buying contract:

1) Compare the dealer cost price with prices displayed on window stickers

It is recommended you check out the updated price list available in the market, and compare it with the dealer cost stated in the window stickers. It will give you an idea how much bargaining you need to do for the model of the car you are interested in buying. Negotiations are generally carried out after considering a few points, which are likely to figure in the arbitration process. Some of the following terms might help you prepare while negotiating with your car dealer:

1.1) Invoice Price – this is the manufacturer’s initial charge or original price offered to the car dealer. The price is usually higher as compared to the dealer’s final cost or “floor” price since dealers receive benefits such as rebates, allowances, discounts, and even incentive awards. Generally, the invoice price includes a certain fee or “charge” for freight/destination and delivery. So if you plan to buy a car based upon the invoice price, and the freight charges are already “included”, you have to make sure that the freight charges are not added again within the sale price.

1.2) Base Price – this is the cost of the car excluding the accessories and other “add-ons” options. The price includes the standard equipment and factory warranty. This price is generally printed on the “Manufacturer’s Suggested Retail” price tag.

1.3) Manufacturer’s Suggested Retail Price (MSRP) – this price is also known as the Monroney sticker, and shows the base price, the suggested retail price, the manufacturer’s transportation or freight charge and the fuel economy or mileage. As per federal law, the sticker should be affixed to the car window, and the purchaser holds the “power” to remove it once the sale has “gone” through.

1.4) Dealer Sticker Price – this is usually printed on a “supplemental” sticker. Actually, this price is the Monroney sticker price plus the suggested retail price, along with additional dealer markup (ADM) or additional dealer profit (ADP) details, and costing related to dealer preparation and undercoating.

2) Get a quote from the dealer in writing

Confirm with the dealer that the written quote is “final” and binding. If the dealer refuses to provide the commitment in black and white, find out the reason why.

3) Check out many dealerships

Find out the deals offered by various dealerships, and their reliability with the local Better Business Bureau.

4) Negotiate independently

Consider various questions related to financing, service contracts, trade-ins after you have agreed upon the price of the vehicle.

5) If you’re not confident about arbitration avail car buying services

Arbitration or negotiations are an understood factor while buying cars. If you are unsure about your negotiating skills, or do not feel confident conducting the purchase on your own, it is advisable to hire services of car-buying experts or companies and let them handle your case.

6) Shop around and compare

Contact lenders directly on your own – do not let the dealer work out the financing aspects for you. Compare the financing offers you have availed, and compare them with what the dealer offers to you. Offers may vary, so it is recommended you shop around for the best deals available, and compare the annual percentage rate (APR) along with the length of the loan. While negotiating to finance your car, focus on the monthly payment and its repayments.

The total amount you eventually pay depends upon the price of the car you are negotiating, the APR and the tenure of the loan. At times, the dealers offer very low financing rates for specific cars and models, but may not be ready to negotiate the prices of these cars. To qualify for the special rates, you need to make a large “down payment”. Many times, it is more affordable to pay a high finance charge on a car, and go in for reduced monthly payments, rather than buy a car that requires a smaller down payment and larger monthly payments.

7) Work out the auto insurance before you buy

Make sure you understand the cost incurred while insuring your car. It is important to calculate how your insurance amount is likely to change with other car scenarios – depending upon the insurance company, and it might be possible to do this online, or through your insurance agent or broker.