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10 Dos and Don’ts of Car Financing

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Car Financing
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Getting a vehicle is a difficult task. This is a common occurrence for many buyers in the automobile industry due to the various challenges that car buyers face. Reading this article, you will understand the dos and don’ts of car financing.

One of the experiences in life considered to be exciting is buying a new car. The same excitement can be a burden especially if the vehicle is too expensive. Well luckily for us, during the business transaction of purchasing a car, one can haggle the vehicle price with the distributor.

All that is needed in this business is for the consumer to do away with emotion when it comes to negotiation of prices. Being conversant with how to buy a car can give you smooth navigation hence making it essential for one to know when to be rigid and flexible when prices are negotiated. Well, here are the tips of what to do when you go to a car dealer.

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1. Research about the Vehicle You Want to Buy

Well, whoever said information is power was not wrong. If you are going to buy a car, it is best to be well conversant with everything about it – from the features to the range in pricing so that you cannot be easily fooled when it comes down to negotiating the prices.

2. Before Purchasing, Converse With Your Insurance Agent

Insurance varies with different cars; therefore, it would be wise to talk to your insurance agent just before the final decision has been made. This is important because it would be terrible for you as the buyer to purchase a vehicle only to find out that its insurance, is more expensive as compared to other cars.

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3. Know Your Financial Plan and Credit Report

It is essential to know how much you are earning within a month and how much you pay. This is because there are cases where an individual may end up with a vehicle that costs more than what they can afford.

As a buyer, you need to be vigilant not only about the price of the car but also the maintenance and fuel consumption. Therefore, such factors should be included in your research in car financing.

4. Have a Calculator With You

So that you comprehend the agreement and check your accuracy, it is very significant that you calculate on your own at the dealership. This is to avoid any confusion especially with crafty dealers who may throw some numbers at you. Therefore, it can be considered important if you knew what your dealer is offering.

5. In Car Financing, be Prepared to Change Your Mind

In case you did not know, the advantage of being a buyer is the ability to change your mind from a deal that’s going against what you anticipated.

Many customers do not do this because they fear they may be embarrassing themselves. Walking away is merely a chance given to you as the buyer to avoid making a bad decision that will haunt you in the future.

6. Do Not Begin the Negotiation By Saying You Will Pay Cash

Paying cash for a car is something magnificent, but if you plan on telling the car dealer that you intend to pay the money, it is a terrible idea.

This is because the major percentage of the dealer’s income is from capitalizing. Therefore, loaning a car won’t earn them any income hence causing them to lack motivation of making a deal with you.

7. Don’t Bring Your Children into the Capital Office

The final step taken to purchase a car is going to the dealer’s capital office to sign some papers. Though it is essential to know whether the vehicle will be suitable for your children, make sure that you are not easily distracted because a simple mistake can cost you money for years to come.

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8. It’s Just Business

As you purchase a vehicle in car financing, it can be an emotional experience because one’s emotions and enthusiasm can cost you a great deal. Be friendly so that you don’t create enmity and essentially firm so that your dealers cannot easily sway you.

9. No Signing of Paperwork That You Haven’t Understood

If you notice anything in your paper that confuses you, don’t sign the paperwork. It would be far much better if you are to correct an error before designing the paper, than signing documents that can cost you money for years to come.

To avoid this, ask questions before signing the documents and ensure that you get reliable answers.

10. Don’t Shop Only At One Dealer

Just like any other standard purchase, you need to compare shops before you make a transaction with your cash. Well due to the modern era, you don’t need to drive around whereas you can check at different websites. In doing so, you will keep dealers on their feet because they will know that competition is stiff.

Conclusion

Having a car and buying one are two different things. You need to be conversant with the process of how vehicles are purchased. As an individual, you need to make sure that you can get to the position of negotiating to get a good car at a reasonable price. With that, we hope that you have learned a great deal from this guide and you are now conversant with the do’s and don’ts of car financing.

Now that you know how to get a car for the best price, what’s the first thing you do to your new car? A full service that includes changing oil, filters and other fluids or a thorough wash that includes interior vacuuming, exterior waxing, and the best tire shine? Let us know in the comments!

About the Author:

Scott Pine is a team building coach and a writer who loves to explore absolutely new areas of writing about tech, travel and autos. Scott is also a web designer of AutoExpertGuides. Follow him on Twitter.

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Paschal Okafor is NaijaTechGuide Team Lead. The article 10 Dos and Don’ts of Car Financing was written by NaijaTechGuide Team. The article was last modified: February 21st, 2019

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