Money: Save money on your next vehicle loan

Here are five tips to help you pay less for a vehicle loan.

February 2009
By By Ada Denis 
New car
Image Gallery
Never pay sticker price for a new vehicle.
Capper’s Photo Library
Article Tools
Print
Comments
RSS
Bookmark and Share

Don't get stuck with a bad car deal. Here are five ways to walk away from an auto dealership and save money on the vehicle loan.

1. Research invoice and make offer

Never pay sticker price for a new automobile. Before stepping foot on the showroom floor, research the vehicle. Several online websites provide the public with dealership information, such as invoice price, hold-backs and rebates. Determine a vehicle's invoice price (the dealer's costs), increase the price by 2%, and make the dealership an offer.

2. Be flexible

Timing a vehicle purchase is everything. Several auto dealerships establish monthly sales goal. If the targeted sales goal is met or exceeded, the dealership receives a bonus from the manufacturer. On the last day of the month, the dealership is more likely to offer buyer incentives and a good deal on the vehicle. To make room for new shipments, the dealership might sell the vehicle at invoice price.

3. Avoid 'No money down' loans

'No money down' vehicle loans are attractive. Buyers can walk into a dealership and drive away in a new vehicle with no out-of-pocket expense. If looking to save money on your next vehicle loan, prepare in advance and save for a down payment. With a down payment, you'll finance a lesser amount and qualify for a reduced interest rate.

4. Accept a short loan term

The average loan term is 60 months. To save money on the vehicle, think about accepting a shorter loan term, perhaps 36 or 48 months. Several auto lenders offer better rates on short-term loans, and borrowers pay less interest. Of course, a shorter term equals higher payments. Before choosing the traditional five-year term, request an auto loan quote, and review monthly payment amounts for a three-year and four-year loan. Select the loan you can afford.

5. Get pre-approved

Don't walk into the dealership without a pre-approval letter. If you want to get a low-rate loan and save money, compare rates with different lenders. Getting pre-approved for an auto loan takes minutes. Complete an application with your personal bank, credit union, finance company, or online auto loan broker. Go with the lender that offers the best deal.

RELATED CONTENT

 

Article from: www.my-articles.com

Bookmark and Share
RSS | Comments | E-mail | Print

Comments

Add Your Comment

You can use this comment form to enter your personal experiences or additional information and resources that you'd like to share with Grit readers. Your helpful advice will be posted on this page.  E-mail addresses are never displayed on comments, but they are required to confirm your comments.

Line breaks and paragraphs are automatically converted — no need to use <p> or <br> tags.

New to CAPPER'S?
Sign up to share comments.
Asterisks(*) indicate required fields.
Name*
Your name appears next to your comment.

E-mail Address*
This will be your login ID.

City State Zip Code

Password*


Confirm Password*

Comments
1500 character limit (Offensive materials and/or spam will be removed, no HTML allowed)
Please Note: Your sign-up must be verified via e-mail before your comment is published.
FEATURED ARTICLES
MOST POPULAR


Pay Now & Save
First Name: *
 Last Name: *
Address: *
 City: *
State/Province: *
 Zip/Postal Code:*
Country:
 Email:*
(* indicates a required item)
Canadian subs: 1 year, (includes postage & GST). Foreign subs: 1 year, . U.S. funds.
Canadian Subscribers - Click Here
Non US and Canadian Subscribers - Click Here

Celebrate the Good Life with Capper’s

For more than 130 years, Capper’s has captivated readers with its unique collection of touching personal stories, delicious recipes, inspirational encouragement and practical advice on gardening, health and money matters. 

In addition to the features that endeared so many to Capper’s through the years, each bimonthly issue provides helpful advice on rural living and do-it-yourself projects.

Get your source for uplifting articles and country living delivered straight to your mailbox. Subscribe to Capper’s  today. Simply fill in your information below to receive 1 year (6 issues) of Capper’s for only $14.95 (USA only).

SPECIAL BONUS OFFER!

At Capper’s, we have a tradition of respecting the land that sustains rural America. That’s why we want you to save money and trees by subscribing to Capper’s through our automatic renewal savings plan. By paying now with a credit card, you save an additional $5 and get 6 issues of Capper’s for only $14.95 (USA only).

Or, tell us “Bill Me Later” and we’ll send you one year of Capper’s for just $19.95!