Finance - How To Beat The Auto Dealers
By Michael Russell
Finance. Pretty broad term. If you look up
the word finance in the dictionary you will
find the following definitions.
Noun
1. The science of the management of money
and other assets. 2. The management of money,
banking, investments, and credit. 3. finances
Monetary resources; funds, especially those
of a government or corporate body. 4. The
supplying of funds or capital.
Verb
1. To provide or raise the funds or capital
for: financed a new car. 2. To supply funds
to: financing a daughter through law school.
3. To furnish credit to.
Certainly more than enough material
to cover. An associate of mine in the
early years of his career after graduating
college with a finance degree spent a
good number of years in this field. He
certainly has a wealth of knowledge to
share on a variety of financial topics.
So in this first of a 3 part series he
is going to enlighten you on the verb
side of this equation. More specifically
definition number 1. To provide or raise
the funds or capital for. Like financing
that brand new car of yours. He offers
this observation and advice.
Financing anything can be a costly proposition
especially if you don't know what you're
doing. This is especially prevalent in
one area especially, financing a new car.
Rather than bore you with a lot of information
that you don't need I am going to provide
you with what information you DO need
so that when going to finance that brand
new luxury sedan it doesn't end up costing
you a fortune.
1. The first thing you have to do is
determine your financial situation. How
much can you afford to pay each month?
Financing a car is a long term proposition.
Most new car loans run for about 60 months,
or 5 years. That's 5 years of your life
that you need to be prepared to meet a
financial obligation or your car ends
up repossessed So don't finance a payment
that is more than what you can afford
each month.
2. Decide what car you want and what
you'd be willing to accept. Maybe you
want that new Lexus but at $1200 a month
financing it's just way beyond your means.
Maybe that $500 a month Chrysler is more
in your pocket book range. Sometimes we
have to settle for what we can afford.
Remember, a car is a means of transportation.
You spend less time in your car than in
your place of employment or your home.
Maybe you just want to get something that
will get you to where you want to go.
3. Do your homework. There are a boat
load of car dealerships out there. Don't
just settle for the first one you see.
Shop around. Compare prices of competing
dealers. Many times if you bring an ad
in from a dealer that is offering the
car you want for less money you can get
an even better deal from the second dealership.
Don't worry. Everybody does it.
4. Don't settle for the rate the dealer
gives you when financing your car. Ask
him what the buy rate is from the finance
company. If you think that rate is too
high tell him you want him to try another
finance company. If you're still not happy
with the rate then try your local bank.
Many times you can get a better rate just
by looking around.
5. Don't let the dealer load you up with
things you don't need like a tow package,
undercoating, rust proofing and a lot
of other junk. This will just add to the
price of the car and the amount being
financed.
6. Put down as much as you can afford.
This will lower the amount financed and
therefore lower your monthly payments.
If you follow these simple 6 steps you
will find that you end up leaving the
dealership with a monthly payment you
can live with.
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Michael Russell
Your Independent guide to Finance
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Article Source: http://EzineArticles.com/?expert=Michael_Russell
