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Seven out of 10 new cars and trucks are
financed, and you can also finance a used car. But to do it right you must
be prepared before and after you reach the car lot! Before you begin looking
for a new car, you can get your loan approved before you ever hit the
showroom. Getting your financing set up ahead of time will offer you the
lowest rates-and you won't be confused by all the dealer incentives that end
up costing you more money in the long run.
One other choice when buying a new car is a
home equity loan. You'll get a good interest rate and the interest rate and
payments are tax-deductible. If financing is a stretch for you, your family
can also co-sign a loan.
When buying a car, here are some good tips
to keep in mind:
Know your numbers
Not all the numbers in your deal are set in stone. Be sure every step of the
way that you know just how much you are paying, when, how and what for.
Know your contract
Read and be sure you understand every word of every document you sign and
initial. Get copies of everything you sign so that you can reference the
sale at any point in the future.
Be wary of car advertising
Don't immediately trust advertising for cars that promises special offers
for people with bad credit, no credit, or for senior citizens. Many times,
these dealers are trying to sell you a vehicle with a large down payment and
high interest rate. You will end up owing more than the car is worth. Again,
having financing set up from AHCU before you shop can help you avoid these
situations.
The more prepared you are coming into a
dealership, the less likely you are to be taken advantage of. AHCU can help
you determine how much you can afford, and you can take that knowledge with
you to the dealership and get the vehicle of your dreams.
For help in finding a car
or working with a dealership, check out what our Auto Consultant offers
here.
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