Home | List of Articles | Submit an Article | Contact Us

Obtain a car loan no longer than necessary

By Jakob Jelling
http://www.cashbazar.com

Some time in your life you will need a new car. You may not want to have the burden of a new car debt, but you may find there are very few alternatives. There are some simple things you can look for that will help reduce the amount of money every month. Depending on your credit situation, a car loan can be very easy or rather difficult. Even though there are dealerships that specialize in selling people cars with bad credit, the purchaser must realize what they are getting themselves into.

Get the loan first

One of the greatest advantages you can have over the dealership is to get the loan before you buy the car. You can shop dealerships on weekends and at night and look at the prices and figure roughly that the car will be about 15-25% less than what the sticker says. Go to a bank or lending institution and fill out the appropriate paperwork. Once they give you the loan, you can figure out approximately how much the car will cost you in advance and apply for a blanket price. You can also sign a contract to purchase depending on financing. This means you can haggle your best price and then tell your bank or financial institution how much the car loan should be for exactly.

Dealerships do not want you to bring your own financing. This takes the deal out of their hands. Most dealerships provide finance departments who are more than willing to lend you the money should you meet their credit requirements. An average car loan can cost the consumer between 7 – 15% depending on their credit rating, financial history and ability to repay the loan. Some dealerships offer teaser rates at 0% financing. A chosen few people in the world can actually get these rates. If you are not careful, you can find yourself paying double for the car loan.

Using dealership financing

You may be pressed for time and have credit issues that make it difficult to get qualified at a bank. Your best option should you be able to get a car loan is read the fine print. You should know the exact dollar amount you are paying before you sign a sheet of paper. Dealerships can be sneaky and try to extend the life of a loan at a certain payment to get you interested. Should you only want to pay $200 per month, the car loan for five years would be $12,000. A dealership will try to finance the deal to go to six, seven and even eight years in length! That would mean a car that would cost $ 12,000 could run up to $19,200. The downside to longer payments is that the cars value could be worthless by the time it comes to buying another vehicle.

About the Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Related Articles:

Great Tips for Car Camping Enjoyment - Camping is one of my favorite activities and my favorite type of camping is car camping. However, there are many other types of camping such as base camping, canoe camping, RV camping, tent trailer camping and back yard camping. Regardless of how you spend your time out of doors or how much time you spend out of doors, there is always more to learn ...

Bread, Milk & Car Insurance - With increased competition between supermarkets to gain market share and improve profitability, the range of products on offer is getting ever diverse. Now, the big three chains, Tesco, Sainsbury’s and Asda have caught on to the fact that their brand name can sell just about anything, including of all things, car insurance. Self Serve Car Washes in the United States - In the 2003 Auto Laundry News Survey it was determined that only 10% of the Coin-op Car Washes had a web site. So if you are doing lots of individual research on car washes that are self serve, do not expect to find a lot of data on the Internet. Owners of coin-op car washes say that only 76% have internet access. The average population is 64% i ...

Jeep Liberty CRD Debuts in the U.S As Diesel Passenger Car in 2005 - Daimler Chrysler is offering two new diesel passenger cars — the Jeep Liberty CRD for 2005 and the Mercedes-Benz E 320 CDI for the U.S. Market. And they’re a hit with customers: The planned yearly output of 3,000 E 320 CDI vehicles for the U.S. was already completely sold out five months after the sales launch, and by the end of the year this fi ...

Do You Make These Car Rental Mistakes? - Word count: 513 Character width: 60 Resource Box: 3 lines inc. url == "Do You Make These Car Rental Mistakes?" - by Neil Stelling B.Sc, MBA - Marketing Manager, ...

Bread, Milk and Car Insurance - With increased competition between supermarkets to gain market share and improve profitability, the range of products on offer is getting ever diverse. Now, the big three chains, Tesco, Sainsbury’s and Asda have caught on to the fact that their brand name can sell just about anything, including of all things,

Mom Can I Have The Car Keys? - Parents find peace of mind with high-tech vehicle tracking system (NC)—It's a question that makes most parents cringe. A teenager's request to use the family vehicle can leave many parents feeling worried and anxious. Familiar doubts inevitably start filling their minds. Will my child obey the rules of the road? Will they speed or drive dange ...

Mobile Car Wash Companies; Trading Tips - If you run a mobile car washing firm we recommend trading for as many products and services as possible. You should trade for both personal and business items. You need to keep in mind that your gross sales will go down as you do this because money will not be taken in for these services you perform. You will however, notice a significant increa ...

For a Complete list of Articles with summaries Click Here