Financing Tips

Most of us at one time or another will have to borrow money to buy our new car, here are some helpful hints to guide you through the process ...

• Before you go to pick out your new car, find out how much you are approved  to borrow before you commit to a new car. Your bank or credit union may offer you a better interest rate than the dealer. There are also many internet sites which will assist you in finding a good interest rate.

• The average new car loans are between 54 and 60 months. However, some loans can be 36 months or 70 months.

•  Try to borrow and or finance the least amount possible, and try to pay it back as soon as you can.  The quicker you repay the loan is the smaller the amount of interest you pay.

• Take your loan quotes with you when you go car shopping. This way when the dealer offers in house finance you, you will be able to compare the numbers to compare and judge their offer.

• Do not shop for low monthly payments. A dealer will write you a loan to fit the amount that you would like to finance, but with likely higher interest payment over the long haul.

• Make sure that you know the exact amount that you are financing, your monthly payments and the actual total you will have to pay back over the course of your loan.

• Do not leave the dealership before getting by financing information in writing.

• Read all the forms carefully at the dealership before signing anything.