Monday, 22 June 2009 13:44
by
Andy M
Buying a car shouldn’t be an impulse decision, so don’t start the process by driving to the dealership. You will leave with a car you really shouldn’t have bought, at perhaps not the best price and likely a payment a little more than you can really afford. Your first step in the process should start with an assessment of what you really want to buy and how much you can afford. If you don’t you might end up with buyer’s remorse. Try following these simple tips when you are ready to by your next car and you will likely have a much longer feeling of happiness about your car purchase.
Assess your stability: Do you have value in your trade-in? (owe less than it’s worth) Do you have job security? Can you keep you new car expenses to 10 – 12% of your monthly take home pay? If you answered yes to all of these, then you are in a great position to buy a new car now. The last action you want to take is buying a new car if it will create financial stress to your household.
A Poor Score will Cost you More: A good credit report, over 700, will likely mean you can get a great financing deal. Under 600 and you will pay more due to higher interest rates due to your credit risk. Call FORUM for to be pre-approved before even starting your purchase. Pre-approval lets you focus on the purchase price, not the financing terms and you will have a pre-determined amount you want to spend.
Research new and like new: The key to getting the very best deal possible and perhaps getting the car you really want can hinge on two important factors. One, research multiple dealers to determine who has the model you want and who is willing to make the best deal. The second point is be willing to purchase used instead of new, often times, even one year old models will be a much better deal because of the quick depreciation of new cars.
These three simple tips can help you avoid the buyer’s remorse that often times accompany a car search that starts with driving on the lost to just “look”. Now is a great time to think about buying car too. The Invest in America initiative plus tax advantages that might be available to you as part of the stimulus package make this a great opportunity if you have a need.