When you are in the process of shopping for a new car, one of the most important aspects is financing the car. This is when you ensure that you are not overspending on the car and are able to pay for it each and every month. Here are three important things to consider when financing your new car:
Skipping Zero Down, Zero Interest, or No Payments for a Year:
Many dealerships will advertise to their customers that if they buy today, they will be eligible for either zero down on the car, zero interest for a certain amount of time, or no payments for a year. Although this may be tempting, you should consider skipping out on the deal. This is because even though it sounds like you are saving money, you really are only saving money today. Over time, you are still going to pay the same amount and you may even end up paying even more each month than you would with a regular car loan. Of course, if you are willing to pay a bit more later down the road, you may consider this option if you are in a rough spot financially at the moment. For example, if you cannot save up for a down payment, then this may be the best option if you need a car quickly.
Check With Your Bank:
Although it's convenient to apply for a car loan at the dealership since it's the place you are shopping for a car anyway, you should still get more than one financing option to be sure you are getting the best financing possible. This is why it's important to take the information of the car that you want along with the financing plan you received from the dealership to your bank to determine if they can provide you with better terms, such as a lower interest rate. This way, you are saving as much money as possible on the car.
Look For Additional Fees:
When the dealership is putting together the pricing for your vehicle, be sure to scratch off anything that you don't want included with your vehicle. For example, the dealership may provide rust protection or window protection. Although this is nice to have, you may not actually need it. Be sure to think over the additional fees to determine whether or not you do want it included. If you drive often, then these additional protection fees may be worth it. However, if you are in a tough spot financially, then paying these additional fees may make it challenging to pay for the cost of owning your car.
When you consider these three things when financing a car, you can be sure that you get the best financing terms for you as possible.