by Terry U. Vostor
No one goes to purchase automotive or car finance. Auto credit financing is an un-bought good , service or purchase – similar to life insurance. People go to buy transportation. They may have a job , need transportation and a car , truck or S.U.V. to get them to their job or drive the kids to school. Yet at some point the concept of auto finance , automotive credit or the question of how do we pay for our vehicle comes into play down the road.
Your grandmother may of advised you “Always pay cash”. Always a true maxim when it comes to banking , finance and personal finance. Yet most cars , trucks and SUVs are bought on time payment plans. People need an auto for transportation today. Transportation is a necessity today . Not all people have access to city bus or subway service. So if you are in the market for a vehicle it is best to go prepared on the basics and concepts of automotive credit and financing. Even if you do not think that you are going to take out an auto loan.
It is not only a question of the interest rates that the automotive credit finance company will charge you. More will come into your basic credit equation. What are you being charged for your automotive purchase ? What is the cost of that car, truck or SUV ? By the time you are in the credit term negotiation game , your ego may be involved and you are fighting for the best finance terms and deal. Find out the value of that vehicle accurately and truthfully. Don’t simply take the seller’s or dealer’s word for it. Deal on that vehicle. Find out beforehand and along the road what it is realistically worth in today’s automotive marketplace . How – other similar automotive products for sale at dealers or private car sales, your banker or the auto black book at your local library. If your new vehicle is upscale and a luxury automotive product you can even purchase auto industry product guides and valuations easily on the internet , simply paying with your Visa or Mastercard charge card. Pay it with plastic online.
Although it seems to be very lucrative and wise thing to do, do not opt for an extended warranty. The initial warranty is effective for a minimum of 36 months or 36 thousand miles. If you do want to buy an extended warranty, be aware that you have plenty rooms for negotiation as the mark up on these types of warranties are more or less 100 percent!
Auto dealers have sales and promotions all the time. You can read about these in the newspaper and online. On top of that there are other options available now rather than simply shopping at dealers. Options abound as well in this day and age for financing. You can apply online in many cases for credit and to borrow money for a car. These applications are often from the most reputable of sources or even from the same dealers that you may inquire with personally in that “little room”. Why not test the waters confidentially and under less pressure by phone or internet auto finance sign up website.
Lastly the advice of one expert shopper , who would purchase several if not many autos in a year – all for the fun of negotiating was to always remember that before you sign the salesperson will promise you anything and everything. However once they “have your money” it is a totally different story. Do your careful homework and shopping.
