Car Loans And Other Means Of Payment
Will I save money buying a car with cash?
With regards to financing your car, you might be able to save money by buying a vehicle in cash. I mean obviously you are not going to have financing costs, so it can save you there. If you decide to pay for a vehicle in cash, do not tell the salesperson that you are going to do so until very late in the sales process. I learned this lesson from shopping with my mother many years ago. She was a cash buyer and early in the process she informed the salesperson that she was looking to pay cash. The salesperson then asked us to leave; wasn't interested in because he would not make money on the financing. We then went to another dealership, didn't mention the cash price or the cash purchase until the very end of the negotiations, we were also shown the door because they had agreed to sell the vehicle to us at a price lower than he could afford to do at cash. He could only sell it at that price if he knew he was going to make money on the financing afterwards. So, cash price is a very valuable tool or a very valuable negotiation skill, but, do not let it be known in the process until the very end, and be prepared to not buy that vehicle from that dealer that day.
How do I finance my used car purchase when buying from a private seller?
To get financing on a used car you'll need to speak to your bank or credit union. It's a good idea to arrange all that well before you go into the negotiation part. You want to make sure that not only are you spending the amount of money that you're comfortable with, but then also of course you have that funding ready to go. If you find the vehicle that meets your needs precisely, that you feel comfortable with, you're going to want to be able to pull that trigger. There are plenty of used vehicle programs, use vehicle financing programs available from credit unions as well as banks.
How do I figure out my car loan payments?
If you're not a financial genius, probably the easiest way to figure out your car loan payments would be to use some of the online calculators that are available now. Many financing companies, as well as actual automotive websites, will have little online programs there so that you can plug in the purchase price of the vehicle, your expected interest rate, and then the term of the loan as well. Start to play with those different numbers, just like the finance man here at the dealership is going to do, and to identify what your monthly payment's going to be.
