Smart Tips for Car Buyers
For many people a car is the most expensive purchase they will make other than their home. It is important to do your research before you start the car buying process. Often time the car we want is not the same as the one we can afford. Before you go know how much you can afford use the How Much Can I Afford Calculator to find out for yourself.
If you are too caught up in finding the right payment, you may find yourself overpaying for your car and ending upside down after you buy it or you may be paying too much for your loan.
Know the cost of the car you are buying: Is this a good price for this particular vehicle?
Know the cost of your loan: What is your interest rate, how long is the loan term, how much will you be paying in interest over the life of the loan?
Check Out Your Credit Report.
Before you make any major purchase including buying a car take a look at your credit report. Check your credit report for free at AnnualCreditReport.com. Check your report for any errors and to see where you stand financially. This will help give you an idea of what kind of interest rate you can qualify for.
Think About Buying Used.
Did you know that a new car can lose 70% of its value in the first 4 years? For many people a reliable used car is a smart financial move! When consumers buy new and put little or no down payment on their new car, they can find themselves upside down in their vehicle loan for the first several years. If you know you will need to buy a car in the next year or so, start putting away what you would spend on a car payment every month. At the end of the year you will have a nice down payment or can afford an inexpensive used car.
If you plan to buy a used car, a quick visit to carfax.com could affect your decision. CARFAX provides complete vehicle history reports that can uncover costly hidden damages, such as flood damage, odometer fraud, even a vehicle that has been totaled or rebuilt. Before You Sign on the Dotted Line.
You are almost the owner of a new car but you still need to be a smart consumer when it comes to signing the sales contract. When you are buying a car make sure you read the sales contract carefully. Never sign something you don't understand, if there are fees on the contract you don't understand, question why they are there. You may be able to get them removed and get a better deal. Additionally you may be offered products like GAP insurance, extended warranties and other options that may be available for less money through other sources like your credit union.
Visit Palmetto Citizens Federal Credit Union for additional tips and assistance with your vehicle loan.
MoneyWACH is a partnership between Palmetto Citizens Federal Credit Union and WACH FOX focused on financial education in the Midlands. Over the course of the year we'll cover financial and economic topics that matter to you. The segment airs the first Monday of every month on Good Day Columbia and will also be archived here for your convenience. Achieve your potential with Palmetto Citizens Federal Credit Union and WACH FOX.