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Ready to Buy a Car … Start Here!
Special to The Truth
Tax return season is here
and many businesses, including car dealerships, hope that
you will spend your refund with them. “This time of year, we
see lots of ‘hot deals’ being advertised. If you are hoping
to take advantage of the sales, it’s important to thoroughly
evaluate your purchase so that you are not the one being
taken advantage of,” said Susan Jester, Community Retail
Lender at First Federal Bank. We have these tips to consider
before purchasing a new vehicle.
1.
Research your financing options.
Having your financing already in place can greatly simplify
the overall purchase process. Start with your financial
intuition and then your local dealerships to understand what
loan options are available and determine which one fits your
situation. Get pre-approved for an auto loan before shopping
for a vehicle. By doing so you’ll know the interest rate and
amount you are qualified to buy. Plus, it may give you
additional negotiating power because you already have
financing in place.
2.
Know what you can spend.
Take some time to review the cash coming into your household
and how much is going out. When considering how much you can
afford to spend on your car per month keep in mind the cost
of insurance, vehicle registration fees and fuel. Don’t
forget to leave a little room in your budget for emergencies
that may pop up.
3.
Read all of the fine print.
Ask for a printed copy of the contract and take it home to
review. This will give you time to thoroughly read the
contract without the pressure of a salesperson looking over
your shoulder. The key item you want to review is the term,
or length of the loan.
4.
Bring a friend.
Particularly if you have a car-savvy friend and it’s someone
that you trust. This way you can make sure the car is in
good condition.
For most, a new car is the
second most expensive purchase they make, which is why it is
important to take your time and find a vehicle that is best
suited for your needs. For more advice on managing for
finances, talk with a lending professional at First Federal
Bank. Find the nearest location at First-Fed.com.
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