Financing a new car purchase requires some research. Before venturing out to the car dealerships uninformed, let's take a look at what you will need to know about the car buying process.
First of all, about 70% of all new car purchases are financed. So unless you plan on paying cash for your new car, or you are going to apply for a car loan, chances are you will be financing your purchase.
1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You dont want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.
First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.
2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.
This is really about personal choice, but a good criteria to go buy is to look at what your needs are.
Once youve narrowed your choices down to a couple, its time to do some car research.
3. Do your homework
Look at interest rates. Youll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment savings, with interest, youll end up paying more in the long run.
You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.
4. Go to the car dealerships (Car Loan Philippines)
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off youll be.
But remember:
Remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Dont let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.
Read More At: www.carloanpilipinas.com
First of all, about 70% of all new car purchases are financed. So unless you plan on paying cash for your new car, or you are going to apply for a car loan, chances are you will be financing your purchase.
1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You dont want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.
First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.
2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.
This is really about personal choice, but a good criteria to go buy is to look at what your needs are.
Once youve narrowed your choices down to a couple, its time to do some car research.
3. Do your homework
Look at interest rates. Youll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment savings, with interest, youll end up paying more in the long run.
You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.
4. Go to the car dealerships (Car Loan Philippines)
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off youll be.
But remember:
Remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Dont let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.
Read More At: www.carloanpilipinas.com