How to get the best financing deals on your vehicle purchase
by Sharleen Benet
If you're buying a new car or a truck or any other vehicle, you would look for the price you're getting on the purchase of the vehicle. You must look for ways you can get the best financing deals on your new vehicle purchase. There are a lot of expenditure apart from buying the vehicle and maintaining. You also need to purchase an auto insurance policy for your car or automobile. Get to know how a car financing is done and how much you can save on a new car purchase or get good deals when making a new car purchase.
What is vehicle financing?
Apart from buying the car and financing it, you also need to insure it against any mishaps or untoward incidents. So, check out the total costs you have to incur. When you're purchasing the auto insurance, you must get auto insurance quotes for better rates. If you want to buy a new vehicle, you need to finance or lease to get the vehicle. In cases with direct lending, buyers take out a loan from the bank or credit union. When a buyer takes out a loan based on direct lending, he agrees to pay back the amount financed as well as an agreed amount that will be paid for a period of time. When the buyer and the vehicle dealer enter an agreement, he agrees to pay the price of the vehicle with the loan proceeds. The loan for as vehicle financing can also be arranged over the Internet.
The most common of all financing is the dealership financing in which the process is same as the direct lending. Here, the dealership retains the contract but sells it to an assignee which is usually the bank or a credit union and this assignee collects the loan payments. Check out what a dealership financing has to offer to a vehicle buyer:
1. Low-rate programs: From time to time, the dealership financing may offer low-rate and special programs for the convenience of the buyer. These programs can be manufactured-sponsored programs even.
2. Financing options: Since the dealership financing has a lot of relationships with banks and other financial institutions, this can offer a lot of financing options to buyers.
3. Ease: The dealers offer financing and vehicle buying at the same place and you need not to go elsewhere for financing.
How can you save on a new vehicle purchase?
Automobiles and houses are almost the same. Before you buy a house, you need to think well and then finance it. The same rule applies for vehicle purchasing. You may put off buying a new vehicle on the basis of heavy costs of a vehicle as well as the cost of insurance premiums. Check out how you can save on your new vehicle purchase:
1. The first most important part of your saving money on your new car or vehicle purchase is to shop for the better price. Check not only your favorite dealer but also other dealers whom you don't know. You never know where you can get lower price and can get other offers as well. Compare the prices you get and then settle for the best. If you have to buy a car from your old dealer, you can ask him to give discounts on the price of the vehicle you're buying.
2. Get all the information on the model of the vehicle you're buying. You can research the price on the Internet and check if you are paying more than the actual price of the vehicle. You can also take print-outs of the website and the price of the car model and show them to the car dealer for clarifications. Don’t let the salesperson take advantage of your unawareness and get all the details prior to you talk to them.
3. Since, this is the end of the year, you can also ask for end-of-the year discounts on your new vehicle purchase. If you're dealing with a new car dealer, you may get discounts to build a good relationship with you. Many of the car or other vehicle dealers give you better rate at the end of the year as new models and cars will be coming in the next year and they would want to get rid of the old ones. You may also get advertisements of the end-of-year sale in the TV channels.
4. Improve your credit report. This is one of the things people forget to consider when taking out a loan to buy a car or when negotiating for better vehicle price. You must try to pay off any debt or any other dues so that your credit report improves and you get discounts or lower price on your vehicle purchase. For having a good credit history, you must not stop using your old credit cards or accounts. Close the ones that are recent or stop using those credit cards that are not old and important. Try not to make any heavy purchases or else your credit score may not allow you to have a lower price for your car.
5. Negotiation can also get you get better deals and help you save a lot of money on your new vehicle purchase. If you're a good customer, you can get better deals on your new purchase. Try to be controlled when you talk to your dealer as if you are indifferent or get overexcited, you may not get what you want. When you talk to your dealer, talk to him confidently and ask them about the features of the car. Once you're done with these, you can come to the price and negotiate for better price. Tell them that your friends also would like to make purchases from that dealer and if he reduces the price a bit, it would do him and his friends good. You can refer that car dealer to your friends and relatives so that you can get better deals when you make further purchases.
You can also get great savings on your car if you buy your car during festive season such as Valentine's Day, Christmas and other major holidays. You'll get better discounts on the vehicles that you want to buy. You may ask your local dealer if they are giving any discounts on the coming holidays and if they are, you can start making preparation to buy a car.
This guest post is written by Sharleen Benet. Her deliberate writings include personal budgeting, personal finance management, process of coming out of credit card debt. She is a financial writer by profession and has specialization in dealing with financial
problems and its solutions.