Car Financing Institutions

Buying a car and buying a house are the two most expensive and essential purchases we are likely to make in our lives. Therefore, we must take advice from experts before we purchase a house or a car.

Most car financing institutions will provide you with the following advice about buying a car:

• Do not rush into buying a car. Consider all the best options and negotiate the best price available.
• Use the Internet to get all the information you need on the car of your choice.
• Decide how much you want to spend on a car and pick a car that suits your budget.
• When you have settled the amount you will spend on the car you want to buy, see how much of your projected budget will have to be borrowed.
• If you need to make a down payment and you have worked out how much you want to spend on a car, fix 20 per cent of the budget as the down payment to be made.
• If you are borrowing from an online lender, a down payment is not necessary. But if you are borrowing from an indirect auto lender, then a down payment is needed.
• Check your credit reports and wait 30 to 60 days to clear it of erroneous or false information.
• When buying used cars, check the retail and wholesale values of cars purchased.
• Go to an online lender before you get an indirect loan from an auto dealership. When you borrow online, you are a cash customer for the dealer and need not disclose your social security number.
• When you have to take a loan from the dealer, first decide how much you want to spend on the car. Once that is determined, work out how much you will pay per month to pay off the loan.
• Test-drive the car you want to buy. If it is a used car, get someone you trust to check the car and see if it is in working order.
• Dealers usually try to increase the sales price over the market price and get the customer to pay the difference as down payment. You need to know the retail value of the car you want to buy to see that you do not make a very large down payment.

See that the interest rate quoted by the dealer is the lowest you can get. Do some comparison shopping and do not allow the dealer to change the interest rate once you have purchased the car.