Auto Loan Buying Tips

Have you ever felt like you bought an auto and financed it and don't really know if you got the right price or financing arrangements after it was all over? Well, don't feel alone. This is a common experience for many people who make auto purchases.

Guidelines for negotiating the car price can be found elsewhere, but we want to share some helpful tips on getting that vehicle financed at the best rates and terms for you.

The first step is to make sure that you negotiate the car's price separate from the vehicle financing arrangements. Most dealers want to lump it all together because they can hide quite a bit of the actual price of the vehicle in the loan contract, and they will usually just try to meet a monthly payment figure that you can live with rather than disclose all the details about the loan.

So your work actually should begin before you ever visit the dealer lot. Try to determine beforehand what vehicle(s) you are interested in buying and become familiar with the average cost for that vehicle, either online or locally. Then make sure that it will fit your budget. Most financial experts recommend that you shouldn't spend more than 10% of your monthly income on vehicle costs, including the loan, gas, repairs, insurance, etc.

Since you now know the price that you want to pay, you need to find out what the loan will cost, so visit some auto loan websites and/or local banks, and apply for an auto loan. See what rates and terms they offer you. Much of that will be determined by your credit history. If you can get pre-approved for a loan, all the better.

Experts also recommend that you try to put at least 20% of the car price on the loan as a down payment toward the purchase of the vehicle, either in cash or in the trade equity of your current vehicle. Why? Well, so many people are being put into loans these days with longer and longer payback periods and little down payment and the net result is that if they want to trade that car in within the first year or so they find that they actually may owe more on the car than it is even worth. So using sound financial decisions beforehand can prevent this from happening.

Now, using all of this information, the price you are willing to pay for the vehicle you want, the average loan you can get, and the best terms that you can get that will fit within your budget, you are now ready to visit the dealer, find the vehicle you have been thinking about and get the deal that will fit your needs. Remember to negotiate the price of the vehicle without financing first. After you settle on the sales price you can then reveal what finance terms you already have found and see if they can beat it.

Get the particulars in writing too. What is the price for the new vehicle? What is the trade amount for your old vehicle if you have one? If you finance through the dealer, what is the APR, the total amount financed, the total amount paid at the end of the loan, the total number of payments and the monthly payment figure itself? If the dealer will not give this clear, concise information, leave and go somewhere else to buy. If they can compete with your prearranged loan terms, then great. If not, get your auto loan elsewhere.

A word of caution. Keep it to business. It's exciting to buy a new car and it's also easy to get carried away and buy more vehicle than you need or previously wanted just because it looks so good or has so many features that the dealer will try to convince you that you can't live without. Having predetermined what car you want and the price you are willing to pay will keep you safe in these negotiations but only if you stick to your guns and don't give in to being upsold.

Using these strategies keeps you in control of the negotiation process and keeps you informed all along the way so that you can be confident that the vehicle and the auto loan you purchase is indeed the deal that you wanted.

About The Author

Duane Lipham is a senior editor for http://www.loans.dlbws.com which provides free information and resources for auto, personal, mortgage, home equity, and refinance loans.

---

What are Home Improvement Loans?

Home improvement loans are loans specifically designed by loans companies to help you fund an essential home improvement projects.Home improvement loans provided by loans companies are secured... Read More

What is a Bad Credit Personal Loan?

A UK Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. A bad credit rating can make your life... Read More

Are You In The Market For a Car Loan?

Car loans are a tempting way to purchase a new car. While they provide for easy access to a car, these loans can get quite expensive if... Read More

Navigation After Financial Closure - Bankruptcy Personal Loans

Bankruptcy has a stigma attached to it that is hard to eradicate. Is that what you really think, then you need to rethink. Just because you have... Read More

Benefits of a Bad Credit Personal Loan

Outlined here are some of the many benefits of a Bad Credit Personal Loan. Bad credit personal loans are increasingly popular these days. A poor credit history... Read More

A Brief History of Loans

No one can say for certain where the history of loans began? it's likely that people have been practicing lending and borrowing for as long as there... Read More

A Consumers Guide to Getting a Bad Credit Loan

Here is a useful guide to getting a bad credit loan. If you're like countless others, then you may be struggling to get a bad credit loan.... Read More

Home Equity Loan Information - What Is A Home Equity Line Of Credit?

Did you know that if you have a home that you've been paying on for years, you may have a lot of usable money right under your... Read More

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution for many consumers looking to raise finance for a variety of purposes. You can get personal loans... Read More

Instant Payday Loan and Instant Payday Loans

Instant payday loans are financial loans that are available for anyone who is experiencing an unexpected crisis and is in need of additional cash fast. A lending... Read More

The Truth In Lending Act

With a stated objective to help consumers, Congress deemed it fit that to enhance "economic stabilization and competition among the various financial institutions," lenders must give written... Read More

Bad Credit Personal Loan - A Pay Day Loan May Be Your Best Option, No Credit Check

If you have bad credit, have an emergency and need some fast cash, an instant pay day loan online could be a quick solution for you. With... Read More

A Brief Look At Various Types of Loans Available

A Brief Look At Loans "Innovative financial packaging" is how it is sometime known. Essentially what this means is that financial institutions look for more and more... Read More

The Wonders of Compound Interest

Albert Einstein called compound interest "the greatest invention of all time." It has even been referred to as the "Eighth Wonder of the World." The trick is... Read More

Secured Loans Tips

Here are some useful secured loans tips. Secured loans enable most homeowners to borrow capital against the value of their property. A secured loan is where the... Read More

Student Loan Limits Not Keeping Up with Tuition Rates

As tuition rates at many colleges continues to rise, the limits that students may borrow each year has stayed the same.Dependent undergraduates may borrow up to $2,625... Read More

Loans Guide

Many people are confused by the different types of loans available.Here is a helpful summary of the most common loans available today.Bad Credit Personal LoanA Bad Credit... Read More

Getting That Car Loan: Simple Interest Is The Best

So here's the situation: you are buying a car but you don't know what type of auto loan offers you should go for. What should you go... Read More

Secured Loans Information

A secured loan is a personal loan which is generally offered to home owners. In a typical secured loan, the home is used as collateral against the... Read More

No Fax Payday Loans Online for a Fast Cash Advance Loan

For a fast cash advance loan, no fax payday loans are now available online. By completing your application online, you don't have to fax paycheck stubs or... Read More

A Brief Look at the Origins of Lending

When trying to discover the origins of lending you might find yourself looking at a lot of unrelated information that doesn't really tell you what it is... Read More

Why Choose a Secured Loan?

Are you wondering why choose a secured loan? A secured loan is a loan which is provided to you from a bank or building society. Secured loans... Read More

Useful Tips On Buying A New Or Used Car

Buying A New Car: A new car is second only to a home as the most expensive purchase many consumers make. That's why it's important to know... Read More

What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan is another term for an unsecured personal loan. Tenant loans are aimed specifically at people who do... Read More

Fast Money: A Guide to Fast Secured Loans

Here is a useful guide to fast secured loans. Here is a useful guide to fast secured loans. Sometimes it seems as though there's nothing you can... Read More

No Credit Check Personal Loans - If You Need Fast Cash, A PayDay Loan Online Is a Very Quick Process

Online payday loans can get you fast cash through a very quick process. By processing applications online and depositing money into your checking account through direct deposit,... Read More