Don’t be Vulnerable to Bad Car Deals

6 01 2012

Car buyers beware, especially the military community.  An increasing number of dealerships do not have your best interest in mind and engaging in business with them may cost you hundreds of dollars! 

Full Article on Edmunds.com

Use these tips as a guide during your car buying times.

  • Resist Impulse.  That shiny new car is hard to resist, we all know that feeling – but sleep on it.  Any major purchase requires a “thinking period”.  List pros and cons of the purchase and make an informed decision.
  • Know Your FICO Score.  Know your FICO Score before stepping foot into a car dealership.  Dealers may convince you your FICO Score is less than it really is so that you can apply for their vehicle financing.  Service members can obtain free FICO Scores here.
  • Shop for the Fairest Price.  Why overpay?  Choose the most favorable price and terms of the deal.
  • Have Money Saved.  The more you can put down (aka less principle borrowed) the less interest to be paid over the life of that loan.  Also, make sure you have money set aside in the form of a savings and/or an emergency fund to help cover costs associated if a financial peril were to occur (job loss, medical expenses, etc.).
  • Understand the Monthly Price of Car Ownership.  Many folks overlook the true cost of owning a vehicle.  Insurance, fuel and maintenance should be factored into your car buying equation.  Call insurance companies for quotes prior to purchasing a vehicle, as well as reviewing gas mileage on the models.
  • Think Twice about New Cars.  New cars lose value the minute they are driven off the dealership’s lot.  Used cars such as previously leased vehicles can be a good deal.  Of course, comparison shopping is key, in addition to knowing the vehicle’s maintenance history!
  • Research Models.  The National Highway Traffic Safety Administration (NHTSA) provides information regarding recalls on specific vehicles.  This information is priceless as you comparison shop between models.

The car buying experience rolls in second as a ‘major purchase’ compared to a home purchase.  Be an informed shopper and take your time before you sign any papers. 

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Think, Review and Decide








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