1)Work with the dealer (the place you are buying the car)
2)Have your bank finance the car.
3)Get an online finance auto loan
4)Home equity loans
There are more ways but this are the ones I will be going over in this article. Well lets get started with the first option.
Work With the Dealer: You have seen these before. You are driving down the street and you pass a car lot that has a huge banner that says something like 100% Approved or Make no Payments for a Year. Most dealers have a loan option that will help you get into that car.
The thing to worry about with working through a dealer is that more often then not they have a much higher interest rate that they charge then going somewhere else. They also are very hard to work with if you get into a financial bind and can't pay your payments. Most often they will repossess that car faster then other companies. On a positive note they do make it easier for those that don't have good credit to get a car.
Have Your Bank Finance Your Car: This is sometimes better because you have a history with the bank. Banks and Credit Unions have some of the best annual interest rates that you can get. I've seen some as low as a 3% fixed rate APR. Because of this they do tend to be a little harder to get.
There is a downside to this as well. If you get a car loan with your bank and an emergency happens, you may not be entitled to any additional loans through them. On the other side banks are easier to work with and you have the convenience of having a car payment that you can pay locally.
Get an Online Finance Auto Loan: This can be scary especially for those that are unfamiliar with an online loan. The most frequent question asked about online auto loans is, How can I shop for a car at a dealership when I am applying for the loan online?
This can be very simple. When you are shopping for a car you usually have and idea of what type and model of car you want. Find out the sticker price of those cars. Like the Toyota you want is $23,000 and the Honda is $25,000.
At this point, you go online and apply for $25,000 and they will approve you up to that amount and send you a blank check. You then talk down the price at the dealer and then write the check for far less then the sticker price.
Home Equity Loans:This is getting more popular as the years go on. The upside of using your equity for a car is the possible tax deductions on the interest you pay on the loan.
When Buying A Car
Buying a new car is a major purchase with major amounts of money leaving your pocket. Ask an honest car salesman and he will tell you that he is trying to get his potential customers to buy something they don't really need. Ask a dishonest salesman and he won't tell you why. That about sums it up plus it opens the door for all kinds of scam artists to try to use tricks to get you to buy a new car. Arm yourself with all the information you can when buying a new car. Here are some tips:
? There are some classic scams that car salespeople use to get you to sign the dotted line on a sales contract. Get on the internet and see what these scams are. Car salespeople are probably the most persuasive type of salesmen/women (most tend to be men) that you will come across. It is very tempting to give into their hype.
? Don't be afraid to say "No."
? If there is ONE thing you don't like about a car - don't buy it. That one thing will bug you down the road as you make those expensive car payments and the honeymoon has worn off. Often, people find the need to purchase another car than keep mending the current one, because of their poor decision making when purchasing the existing one.
? Don't give the salesperson a feel for what you like and don't like. Don't get too personal with the salesperson. Scam and con artists are skilled at getting into you head and detecting something you have an emotional or preference stake in. Keep focused on buying a car and try to avoid the small talk with the salesperson.
? How much is that car really going to cost you in terms of maintenance, insurance, and fuel? There are web sites where you can get this information. Another bit of knowledge to arm yourself with is knowing how much that car loan is going to cost you in terms of interest.
? Check your credit report and correct any errors that may be there. It will help to get your loan approved faster.
? Read reviews on various cars and educate yourself before going to the car lot. The internet has a wealth of information resources for buying new cars.
? Today, there are many places where you can purchase a car. There are classifieds in your local newspapers, local car dealerships, car magazines, the internet, with a huge array of sites, also offers many great deals. Ebay is also an increasingly popular destination to find cars and not necessarily just to from it. Ebay can also be used for researching the car you are looking to buy. You can use it to gain an idea of how much cars in general go for based on your specifications and conditions. There are many, many new listings every hour that you can browse through to help find your new car.
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Cancel Listing On Ebay This is usually very small, but for larger auctions, this may be something to consider before cancelling an auction if you dont want to lose a lot of money