Guide to car loans for new buyers

Don't Buy The Wrong Car Does the phrase don't buy the wrong car help anyone? It will never cease to amaze me about people and their cars. Most

buy for

transportation,

some

buy cars for status, some for looks, some for function, but many people do not buy the correct car. If you are a one or two car family and you have limited income, you should buy a vehicle for that fits your needs and keep within that budget.

This guide to car loans for good or bad credit was brought to you from http://car.bdcole.com/ Too many consumers go to battle, yes I said battle, totally unprepared for what they will encounter on a automobile dealers lot. They let a salesperson sway them into a vehicle that may not meet the needs of the family, priced way over the budgeted amount and cost a fortune to fill-up and/or repair. Making the wrong deal can have devastating effects on the entire family. Over budget forces changes to lifestyle and financial problems, by not being able to save or invest.

The problem starts when no research is done and the consumer drives to the nearest automobile dealership with no idea on what it is that they're doing except that some television or local paper advertisement caught their eye. The salesperson is primed and ready to jump on

this prey like there's no tomorrow. You see the salesperson does this every day, where most consumers only venture into a car dealership once every 3 or 4 year. Who do you suppose holds the upper hand?

The consumer needs to take this transaction slowly and carefully to get the correct vehicle for her family. Each needs to understand the deal as well as arm them self for this battle. Here are a few things that you should do to get the correct car.

1. Do research - The purchase of an automobile (I'm talking truck, van, or motorcycle also) could be the second most expensive purchase that most individuals do. The first is a purchase of a home. Check out the car you need by price, safety, consumer opinion, etc. You even have the capability to get the invoice price as well as option pricing there as well. Just having this little bit of information can enhance the buying process tremendously.

2. Test drive the vehicle you researched without buying the first time - The ability to test drive a vehicle and just say thanks is somewhat an art. You need to check out the car you are going to purchase without making the deal right away. After you're done, just tell the salesperson you were test driving and doing comparison shopping and not ready to deal just yet.

3. Finalize your options, but be flexible - You should have all the "extras" already thought out and priced. You can get pricing for manufacture suggested retail price (MSRP) as well as invoice.

You need to remain flexible with this though because a dealer may be able to offer something on their lot a little cheaper than getting this from one of the other dealers. The reason is that

many dealers tack on their charges when they move a car from dealership to dealership. The additional charges for to (you guessed it) you!

4. Obtain financing before going to a dealership - This can help you eliminate the main focus and let you deal with bottom line prices. There are many ways to do this and utilizing an on-line loan company can get you your funds quickly and with very good interest rates.

5. Sell you old vehicle privately - Taking the second most fooled around with functions out of the deal also gives greater focus to the pricing of the vehicle and not the difference between a new car and the old one you're trying to trade.

6. Purchase your car at the correct time - Dealers have quotas to meet and are willing to come down on a deal if they are close to that number. The numbers are collected monthly so you know that you should purchase the last week of the month. You also want to avoid Saturday and Sunday dealing because the pressure is really turned up then.

7. Know how to walk away - If the deal doesn't seem right, walk away. There are many dealerships that sell the type of vehicle you want so you don't have to buy from the showroom you're in if it just doesn't feel right.

For more research and reading visit: http://car.bdcole.com/category/loans/

Buying on monthly payment instead of price

The 1st mistake many consumers make when purchasing an automobile is to buy their car based on the payment rather than the bottom line or the price of the car. This is usually done when you need transportation, know how much you can afford a month for the next few months and then look to make the car fit in that range.

Now the concept is not that bad, you should be on a budget and follow it. This is so you do not pay out more than you take in. The trouble is that many let the their "friendly" car sales person in on their plans.

This is not the person that has your best interest at heart. He or she is trying to get you to pay more so he or she makes more.

How often when you get on a dealership's lot that the sales person asks either or both of these questions? How much were you planning to spend? or How much did you want your payment to be?

The answer should be two questions from the consumer of "How much does the car invoice for? and What do you think is a fair commission for selling the car?

You'll more than likely pay more if you negotiate on payment rather than price. Since any amount divided by the right number of months can equal your monthly payment. You'll pay longer and much more in interest.

The 3 Parts of the Automobile Deal There are 3 parts to the automobile deal; the purchase of the car, the trade-in, and the financing. Many people get caught up with a professional salesman and can't tell where one starts and the next ends. I don't blame consumers for not being aware since they usually do this once every 3 or 4 years. The dealership knows this all too well and tries a number of tactics to roll all three into one. The end result can be confusion, over payment and horrible feeling that they've just been had!

1. The Purchase - The purchase of the vehicle should be just that, how much is a dealership willing to sell the car to you for. You should know ahead of time what vehicle it is that you want, how much the options cost and what the invoice price is as well as the Manufacturer holdback. Never ever pay Manufacturer Suggested Retail Price (MSRP) or sticker price for an automobile unless the dealer can't keep enough cars to meet the demand. Some catch phrases that a salesperson will use to confuse things are "How much did you want your payments to be? Home much were you thinking of spending? or What price range are we working with here?"

The above is the real deal, these 2 may be options!

2. The Trade-in - You never discuss the trade of the vehicle before you have a bottom line from the salesperson. If they ask you "will you be trading anything in at this time?" Say, "I'm not sure or just say no". You can always change your mind as I'm sure the salesperson will do when you mention that you have a trade. If you are going to trade your car in, get an idea of how much your car is worth. This you can do from Kelly Blue Book or Edmunds, the 2 authorities on car pricing. Negotiate the price of the trade without inflating the bottom line price of the car. My advice is to skip the trade-in and sell this on your own. You cannot get a good deal on the trade since the dealer is only willing to offer you a wholesale price. You see the dealership make much money on reselling your old car versus selling you the new one.

3. The Financing - The third part of the deal is the financing. After you negotiate a deal for the car and throw in your trade (if you get a good price) the last part is how you're going to pay for it. The best way is to have your check in hand before you walk into a dealership. That way you only have 2 parts of the transaction to worry about. If you let a dealer work on financing you may end up paying much too much for the financing and cold be working on picking up the cost of dealer reserve.

The bottom line is that you want to keep the 3 transactions apart from each other and don't let the salesperson in on how much your payments are or what you want to spend. You should be the only one knowing that information.