GET HELP!
You should now be ready to go out and get a great financing deal. Just remember these important tips:
• The best strategy for finding a car loan is to shop around. Check out what deals are offered in the marketplace (rebates, low financing, etc.) before you decide to buy a specific car.
• Find out your credit score and, if necessary, correct errors at the credit bureaus.
• Compare interest rates at banks and credit unions, and ask about fees and early payoff calculations. When you've found the best outside loan, apply and get preapproved. Then visit the car dealer with a check in hand to cover the purchase price of the car, plus any sales tax and registration fees.
• Don't be afraid to investigate dealer financing and automakers' captive finance companies to see if they're offering lower interest rate incentives. But whatever you do, says Susan Tiffany of the Credit Union National Association, "don't buy a car just because somebody's offering a deal on it. Make sure you like the car."
• Be careful in the financing and insurance, or F&I, office at the dealership. Don't be afraid to turn down last-minute add-ons like extended warranties. Understand all the details of the contract before you sign. Don't rush through the process.
• If you realize after the fact that you've gotten a bad financing deal, remember that you can always refinance.
Pricing Your Car
The key to selling your car is pricing it wisely. A common problem among private-party sellers is overpricing. Avoid that mistake by doing some initial research:
• Determine your car's value. Go to KBB.com
• Edmunds.com or any other link provided and take an average.
• Provide an honest evaluation of your car's condition to get a true idea of its worth. Remember: A potential buyer will tend to be more critical of the car's condition.
• Search used-car listings for the pricing of similar models in your area.
• Research dealer pricing but don't expect to get the same amount in your sale. Dealer sales provide some benefits that private-party sales do not, such as return/exchange policies, limited warranties, etc.
• Factor in likely repair work. If your car is worth $10,000 but needs a new clutch, then don't expect to receive full value. Reduce the price in accordance with necessary repairs.
• When creating your ad, you'll have the option to add "Or best offer" language to your asking price. Including OBO could result in more leads, but it may also result in lower initial offers.
• Be realistic: Is your used car still a popular and viable model, or are you driving a relic of an earlier age? Price it accordingly.
