New Car Purchase – Answer You Have Been Looking For

Always get the blue book rating for your new car. Trading in a vehicle can take some money off the final price, but that’s only if you know how much it’s worth. If the dealer is trying to low ball your trade-in, your knowledge will give you a better edge to negotiate.

There are two ways to opt for a car loan, called secured and unsecured loan. As long as secured car loan is concerned, a borrower can get it by placing collateral against the loaned amount. It could be in the form of a car or any other asset belonging to him. On the other hand, unsecured loan needs no collateral or security to be placed against the amount. But the lender may ask the borrower regarding his repayment ability. However, the borrower should place his annual income, employment or financial standing proof to ensure safe return of the loan.

This is a scam applied to car buyers who managed to get the money for the purchase and will not ask the dealer for financing. The dealer will say that the check bounced and offer you financing. Of course he will convince you that their deal is great and you can get the car immediately and so on. Do not be cheated by these sweet talks. If you have taken finances from a credit institution you have surely check if they are respectable union and if their checks are accepted.

Never deal in the dealership digital marketing finance options. This may sound harsh, but all the car saesman is interested in is selling you extra warranty and bumping the price up by at least a third. You can always get credit outside if you need to and also by warranties externally also.

The main options available to finance your car are outlined below. Internet sites may be useful to help with searching for and comparing loan products.

It is not hard to find a lender who will finance your car, whether in full or in part. If you can afford part payment, you need not take huge amount. Thus you save on the interest.

If you decide to pay the set ‘balloon’ payment you keep the car. Alternatively, if you have kept the car in good condition and stayed within set mileage limits, you can return the car and the deal is closed. None of you deposit or payments will be refunded but the advantage is you will not have to make up the shortfall if the car is worth less than the GMFV. Finally you can use the difference between the balloon figure and the value of the car as a deposit on a new car. This is only possible if the car is worth more than the balloon payment. Although this is usually the case you should be aware that it is not guaranteed.

Personal Contract Purchase. Here a deposit of usually 20-25% is paid followed by a low monthly rental type payment. At then end of the agreed term usually 36 months, a final or balloon payment is made to make the vehicle yours. This is known as the Guaranteed Minimum Future Value. If you choose not to make this payment, you hand the car back with no extra payments, but you don’t get back your deposit. If you wish to part exchange the car for something else, it is valued by the garage and if it is worth more than the GMFV that is the deposit on the new car, if it is worth less, you will not have to make up any shortfall. This is a convenient way to fund a car every two to three years of so if you can get together the deposit.

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