How To Find The Right Car Loan

There are many benefits to choosing a used car over a new one. Price is often the number one reason why people decide to go used. Unlike a new car, used cars may require a bit more tender love and care than a newer vehicle under warranty. Finding the right car and car loan for your needs can be stressful but becomes an easy task once research has been done. It's also beneficial to watch for online deals and promotions.

10. Determine The Vehicle’s Purpose

Narrow down the type of car needed by determining what it will be used for. If you have a long commute to work, consider a fuel efficient car. If the vehicle’s purpose will be for taking road trips, consider a car with lots of room. Families with children may want a vehicle to keep kids entertained while riding in the backseat. Many minivans and middle size sedans come with television sets and universal serial bus outputs for electrical devices.

9. Make Sure The Vehicle Is Paid Off

Buying a car that is not paid off means you will be assuming any unpaid amount. Work out a deal with the seller to have the vehicle paid off before transferring the title to your name. This can be worked into your offer or the seller can deduct this amount from the price of the vehicle. Ask the seller to provide you with documentation that the vehicle has been paid off or sign an agreement to indicate he or she will take care of this to avoid legal fees in the future.

8. Ask Questions

Be sure to ask questions if a car interests you. Sellers will be hesitant to admit problems with the vehicle unless otherwise asked. Before making a purchase, be sure you have asked about prior accidents, owners and any other imperative information that can be used to understand the vehicle’s current condition. Ask for a second opinion or bring a friend along to determine if the vehicle will require maintenance or repair work.

7. Determine Method Of Payment

Before shopping around, determine whether you will be paying cash for the vehicle or financing it. Keep in mind interest will acquire on any financing deal so there will be extra fees to take into consideration. If a loan is needed to purchase the vehicle, talk to your bank about financing options prior to looking for a car. Be prepared by checking your credit score prior to applying for a loan and determine whether a co-signer will be needed.

6. Avoid Features That Increase Insurance Rates

Some vehicles may come with attractive features but are red flags to insurance companies. Sporty vehicles and flashy colors tend to increase insurance rates. Larger vehicles with powerful engines or four-wheel drive cars will also raise insurance rates. Vehicles with a history of being stolen are also at an increased risk of higher insurance rates. Be sure to check with your insurance company before going car shopping to determine what their requirements are.

. Shop Around

Buying a used vehicle is a big decision. Give yourself plenty of time to shop around in order to determine which vehicle will best meet your needs. Visit dealerships and ask to test drive different cars or ask friends to keep an eye out for you. Use the internet to locate nearby used vehicles. Shopping around will help narrow down important features that you need in a vehicle as well as rule out costly features you do not need.

4. Consider Warranty Options

Used vehicles may require more work. For this reason, consider a warranty plan if buying from a dealership or from a personal seller. A warranty should be able to cover a wide variety of services and repairs that you would otherwise be responsible for paying out of pocket. A warranty also ensures your vehicle will be professionally serviced. Take into consideration deductible fees and estimate how much coverage will be needed.

3. Use Internet Tools

Internet websites are available to make your decision as easy as possible. Get a car insurance quote by visiting most major insurance websites. Geico.com is famous for providing a car insurance quote in fifteen minutes. Use the internet to locate nearby vehicles or determine a vehicle’s history including how many accidents it has been in. There are also websites available to chat with an expert about which vehicle would be best and how to properly maintain a used car.

2. Do Your Homework

After narrowing down your options, do some internet research on the type of car you are interested in. Search what other sellers are asking for the same make and model to determine whether the deal is fair. Chat with car experts to make sure they agree with the decision and agreed upon price to avoid being scammed or other misunderstandings. Doing homework will also help you determine how much to negotiate.

1. Determine Your Budget

Price is the number one influence when buying a car. Prior to looking for a used car, determine your budget. Be sure to determine a monthly car payment well within your means. This needs to include the vehicle’s title, registration, tax and insurance fees. Although each state may have different tax requirements, a general rule of thumb is to add ten percent of the vehicle’s purchase rate to other fees.