Auto Buying Guide

Before venturing out to the dealership to buy a car you need to do some research and get familiar with the whole process of automobile buying in order to ensure you make the best deal.

This auto buying guide will review some of the most important steps in the car buying process.

Financing Your Auto Purchase

Unless you are going to pay cash for your new vehicle, you will need to apply for an auto loan. In fact, only about 30% of the new car purchases are paid cash, the rest are financed. Therefore, financing your car purchase should be one of the first aspects of auto buying you should consider.

Start with evaluating your financial situation and estimating how much you can afford. You can use our auto loan calculator to determine the total purchase price of your automobile depending on the monthly auto loan payments you can afford. Remember that auto expenses are not limited just to the down payment and monthly car payments. You should include in your budget the expenses related to licensing, registration, insurance, gas, maintenance, etc.

Choose the Right Automobile for You

Having estimated how much you can afford to spend for your new car, you can now choose an automobile that fits into this price range.

Don't consider only your wants; try to focus on your needs first. Do you need a compact car or a reliable minivan suitable for a big family? Do you need a vehicle mainly for city driving or you plan on taking a lot of road trips? These are all questions that will help you determine the type of vehicle you need.

After that, compare the pros and cons of the different car models till you narrow your choices down to just a couple.

Time for Research

In order to make a good deal you need to do your homework well and spend enough time sorting out the details.

Check the interest rates different auto financing sources offer; of course you would want to get the lowest rate possible since this will save you money in the long run. Don't count solely on the dealer; check what terms and rates banks, credit unions and online lending companies can offer you for your auto loan. Moreover, knowing what auto dealers' competitors offer will only help you in the negotiating process.

Look out for rebates and various manufacturers' incentives since they may turn out to be even a better deal than low interest rate financing or even zero financing.

At the Dealership

Now that you have done your homework well you are ready to go to the auto dealership. You know what car you want, how much you can spend for it and what rates you will be offered (or better yet, you may have arranged the financing preliminarily through a different source).

The research you have done beforehand and all the information you have will help you negotiate a better price for your automobile purchase.

The auto loan calculators and the information available on this site are intended to serve only as general guidance regarding auto loans. Since they do not take into account your individual circumstances, we cannot and do no guarantee their accuracy or suitability to a specific purpose. We highly recommend you to consider the appropriateness of any information to your objectives before acting on it, and encourage you to consult a qualified professional regarding you particular personal situation.

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