Planning to Buy a New Car?

Took some time to answer these:

Why do you need a car?
What type of car have you got in your mind?
What’s your budget for the car you’re planning to purchase?
Would it be in cash or financing? What have you considered, in-house dealer financing or bank financing? Have you looked at their processes?

The need for a car

I say our family is growing. Everyone of us is busy doing our own things. A car that would be perfect for solo ride for the man in the house is almost tantamount. Moreso, a car that would conveniently fit us all and take us wherever we might want to go (whether weekend shopping with the family or a weekend getaway) is becoming a needed necessity for all of us. Hence, we decided that its about time to get us a new car. Old car was sold 2 years back

The car we have in mind

We’ve considered all things possible – Car manufacturer, size, safety, fuel efficiency and price. With a family of five (3 grown kids: ages 21, 16 and 9), we say we needed a car big enough to handle us- but, still have a room for more and few more stuff. With a bigger car means a bigger engine and with a bigger engine means more fuel consumption. We’ve made a list of car types we wanted (of course those that are only within our specified budget). This was an overwhelming task as there’s a lot of beautifully-made cars out in the market – it’s harder than we thought what to pick. However, when considering the price we could only afford, the choice is easy.

The budget

Thanks to the Internet, we don’t need to go a mile to list down the prices of cars we selected. Plus, every information needed is there – the engine specs, the interior designs, the accessories. From there, you’ll see a better picture of the car you are shopping. You’ll get the idea of the price. Right there even without going to the dealer, you’ll know how much you can go with your budget and how far you can go.

Cold cash for your new car or car loan?

If you’ve saved that MUCH for your new car – then, good for you. Be on your way to the dealer and go check your new car. Easy. However, when you are like us and could only spare a few thousand bucks for that dream car – car financing is our way to owning a new car.

What type of car financing would you consider?

Here is where your smartness is surely needed. As we know, there’s a slew of financing firms available in the market. Take note, we’re talking of new cars here. I’ll discuss in other post our experience going through other type of financing other than bank financing. For now, it’s about bank financing. For this type is the one we decided to roll out our car purchase. It’s fair to say that interest rates in banks are fairly same. Charges/fees may vary -this is where you must be wary of. Things like chattel mortgage and car insurances – these are probably the most pricey in car loans. If you can bargain for these things with your bank or financing firm – way to go! You can also consider add-ons, free accessories, other freebies, and car registration which you can bargain for with your car dealer. Take note of these as think about the money you could saved when you availed dealer’s freebies. Lastly, if you opt for bank financing, talk to your bank first. It pays to know the market – the prevailing rates, the terms applicable to you, and the documents required. We might probably find bank financing as tedious. The reason why other lenders prefer other types of financing – but, that, would hurt us in terms of higher rates. With banks, Let me tell you HOW WE GOT OUR NEW CAR THOUGH BANK FINANCING (<—Please READ if you are applying for a car loan)- IN JUST 4 DAYS!!! Here’s few more readings to help you decide before buying a car: