There's nothing that quite compares to the thrill of driving around in a new car. However, that thrill is quickly tempered by seeing how much you'll have to pay, either in cash or with an auto loan.
Fortunately, you don't just have to meekly accept the price a car salesman offers. Here are three steps you can take that will help you get the best price for a vehicle.
Knowing what kind of vehicle you need is the first step in ensuring your get the best price on your next vehicle. Ask yourself questions like:
Do you want a smaller or bigger car?
Does gas mileage matter to you?
How long do you plan to own the vehicle?
Do you have a color preference?
Do you need extra space for kids or pets?
Answers to these types of questions can help you narrow down your list of potential vehicles, allowing you to better understand how much you'll need to borrow to get the type of vehicle you want.
Being an informed buyer is one of the best ways to obtain the best deal for the best price on a vehicle. Researching online is a great place to begin to make yourself aware of the potential cost of a vehicle you’re interested in purchasing. Exploring the various auto dealer and vehicle manufacturer websites for pricing and features can help to give you an edge when negotiating the purchase price with the salesperson at the dealership.
Getting preapproved for your auto loan through your credit union before you visit the dealer will help you get a great price on your vehicle. It will ensure you stay within your budget and show the dealer you are serious about purchasing a vehicle, giving you extra leverage in your negotiations. By getting preapproved, you will also be able to judge if the dealer is offering you a good deal or not, and at the end of the transaction you will feel good knowing you’ve gotten the best interest rate you can qualify for. Also, your preapproval is usually good for up to 30 days so you have time to shop at different dealers.
Buying an automobile is expensive in the best of times. However, when you get a pre approved auto loan, know the best time to buy a car and know what you're looking for in a vehicle, you can feel more confident about walking onto a dealer’s lot and driving off in a vehicle that is not only within your budget, but perfect for you and your lifestyle.
If you'd like help figuring out how to finance a new car, become a member of First Alliance Credit Union today. Our member advisors will help you determine what options are your best bet, from getting an auto loan to making regular deposits in your savings account to help make a down payment. You might even be able to open up a certificate of deposit to take advantage of the higher interest rate to build up your new car fund.
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