Auto Trends

…Learn the Common Pitfalls.

Before you even step foot onto the lot, set a price limit on the car you can afford… and stick to it! A good rule of thumb is to never go over 20% of your monthly income for any monthly payment.

It is even a good idea to give your number to the dealer once negotiations begin, so he knows your budget. It is just far too easy to find yourself buying that cool car you have always wanted, especially when the dealer tells you with an honest *smerk* that you can afford it.

He’ll tell you all you need to do is scrimp a little here and there to find that extra $400.00 every month. You don’t need things like food, heat, water, and electricity, especially since he doesn’t have to live in your home.

Now that you have your numbers ready, you will need to get a report on your credit rating. Depending on the strength of your rating, you should get a pretty good idea of the kinds of interest rates you are headed for.

It may even be beneficial for you to get a no-obligation pre-approved loan for your designated price limit before you start car shopping. This step can often help gain bargaining power once negotiations begins.

Another pitfall to consider is the debate on whether it is better to have 0% interest rate or cash back with a higher interest. Most consumers will automatically just assume the 0% is always better; which is exactly what many car dealers are counting on.

Do the math yourself when the dealer is giving you your payment options. If they were any better at math configuration, they would be designing atomic bombs, rather than selling cars.

The thing you have to keep in mind is money down on a car with a competitive interest rate can sometimes beat the price of a deal with 0% financing. It cannot be stressed enough to do your own calculations before making any decisions.

Finally, Take a day to think over everything that has transpired before making any decisions. They will beat you into the ground with options, decisions, and hours of waiting, so that by the time you have something figured out, you just want to sign the dotted line and get out of there out of there.

Resist that temptation; though, you’ll want to have a fresh, clean mind when you are reviewing the contract for signing. Otherwise, you could be in for a host of useless add-ons, such as rustproofing, ever-lasting wax , and outdated pin striping. But, why should you care when you’ll be worried about food, heat, and water for the next seven years?

Don’t let this happen… Happy car hunting!