Car shopping is not an impulse purchase. A lot of thought and research goes into the decision before you ever step foot on the lot of the dealership. Spending extra time beforehand can save you time and money. Consider your needs, driving habits and especially your budget. Learn about different models, available options, prices and problems. You can find loads of information on the Internet. You will not only find out what the car is worth in the marketplace, but also information on the best way to buy a used car, how to perform a thorough inspection and many other vital things you need to know, such as dos and don’ts of car buying.
Cash is not an option for most of us. If you can pay cash you will save yourself a lot of hassle and expense. If you finance, try to make as large a down payment as you can. This will reduce the amount you have to borrow, will enable you to pay off your debt sooner and cost less in interest charges.
You have a variety of lenders to choose from. The Internet alone is filled with hundreds of thousands of lenders. Shop around to get the best deal for your situation. Beware of advertisements that sound too good to be true. Most likely, there are hidden costs and fees in the fine print or terms you just can not live with.
Before you sign anything, make sure you understand:
- Exactly how much you are paying for the car
- How much you are borrowing
- Finance charges