Car Finance

The biggest question that most car buyers ask before they even get to the car lot is what is the best way to finance this vehicle and what is it going to cost me? Experts can debate lease versus purchase versus lease-to-purchase until the cows come home, but that won’t help you unless you can answer a few basic questions. What will this vehicle be used for and how much can you afford to pay? You can automatically reduce the price of the vehicle in your mind if you can afford to pay cash. Then it’s simple. No interest charges and no buy-lease debate. Buy. Secondly you can reduce the price of a vehicle by considering a two or three year old vehicle. Right off the bat you eliminate the depreciation cost incurred during the first three years of vehicle and you also knock five to ten thousand dollars off the sticker price. But back to your main questions. What exactly do you want this vehicle for? If you don’t care about looks then look for high quality, sturdy vehicles. If you plan to use it to enhance your social status then you need to think differently. Before you get to the car dealership think about what you want and need, before a salesman convinces you otherwise. Next you need to think about how much you can afford to pay for a vehicle. Some experts say that the cost of a car loan should not

be greater than 10 percent of your monthly pay. Also factor in your trade in and down payment which should be as large as you can afford to reduce interest charges. You should also think about getting the shortest possible loan, maybe 24 months if you can swing it. To not only reduce interest but to let you get another car if you want in two years. Finally you should check out who has the best deals on car loans amongst the lenders in your community. You will either find a deal that suits your budget on a car loan, or you can consider a lease. Now that you know how much you can afford and what you need in a car you can go check out the vehicles. Have fun and happy motoring.