Tips on how to purchase your first car

Now that you’re finally financially stable and feel as though you are ready for a brand new milestone in life, you have finally decided to get your very first automobile. You’ve set your eyes on a certain model, color and brand but you don’t know how to negotiate your way to get the best possible a car loan. Once you visit your selected car dealership, get ready to be bombarded by sales pitch after sales pitch. Both the sales man and financial manager will try their best to sell you everything from their latest car model to extended warranties. Here’s how you can work your way past the sales pitch and carry the negotiation to your own terms.

1. Do not settle for the given price
Salesmen will often ask you immediately how much you are willing to pay for the car each month. This is a trick used to get you to tell them the maximum price you’re willing to pay for a car while making you think that the negotiation is based according to your terms when in reality, it isn’t. Remember to negotiate the actual selling price of the vehicle, not how much you are going to spend per month. This may sound easy but if you fall for their tricks, your car may end up more of a burden than a reward for your hard work.

2. The longer the loan term, the bigger you pay
Some offers presented to you may seem cost efficient because dealerships make it seem like your paying very little per month. What they are actually doing is lengthening the term of your auto loan. It is absurd to be paying for a car for seven to eight years. Never take a car loan for more than four years (five years is still considerable.) Take note, as time passes by, the value of your vehicle depreciates, yet your payment continues.

3. Never settle for a high interest car loan
This is probably a given in any loaning situations, but this may as well be the golden rule. People with impressive credit history are offered single digit rates. People who have a few kinks in their credit history get about 12% to 15%. But individuals with bad credit ratings are offered up to 25% interest rate. That is simply ridiculous! Regardless of your credit history, it is definitely not worth paying unreasonably high rates.

4. Don’t let your emotions make the decision
Yes, it is your dream car. Yes, you are only paying very little per month. Yes, the deal sounds great. What may seem so wonderful at the moment can lead to years of regret. Regret that only a bad car loan can bring. The dealership is unwilling to help you make a sensible decision and is there to make a sale. So keep your emotions out of the equation and think clearly before signing anything you might end up regretting.

Getting your dream car is huge step. Make sure you don’t regret your choices by ensuring a good quality loan that best fits your financial stability. There are also available loan out there that you can avail such as payday loan, this loan are suitable to avail if you need emergency cash or you are short of money.

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