MORE than Finances

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Things You Probably Don’t Know About Financing a New Car

For some time now, you have been considering the possibility of financing a vehicle. At last, you are going to take the leap and look for a car to purchase. What are some of the things you might not know about financing a new car?

Higher Insurance Rates

Right now, you might be assuming that you are going to get an excellent insurance rate on your car because it is brand new. Well, be careful with that. Since the car is new, you’re going to need a full package that includes collision. If you have been driving around an older vehicle, the insurance rate is probably going to surprise you. When you want to find a great package that works for your situation be sure to contact homeownersinsurance-quotes.org.

Credit Scores and Interest Rates

Hopefully, you know that in addition to the loan payments for the car, you are going to have to pay interest on that loan. These payments will just be added right on to your monthly loan payments. However, you might not realize that your credit score has a huge impact on how high or low these interest rates will be. If you have poor credit scores, then you are likely going to wind up with some rather high interest rates.

You Can Refinance

Most people have heard of the term refinance, but they might apply it only to housing situations. Despite what you may currently believe, you can actually refinance a car loan as well. In a few months or so, you can try to refinance to get a lower interest rate. With a refinance on a car loan, you might also be able to extend the life of the loan. If you are having trouble making the monthly plans, having the loan for a longer period of time could certainly help.

Understanding The Sticker Price

Too many people assume that they can walk into a car dealership and just demand whatever price they want, but it does not work quite like that. Yes, you can look for price comparisons on the car around the neighborhood, and you can certainly see what its estimated value is. Still though, this information does not mean that the dealership is going to give you the exact price that you would like to have. Remember, the dealership is a business, and it needs to make money. Be reasonable with your negotiations.

Trading in Cars

You may be a little bit confused about this process as well. If you are going to trade in a car, that vehicle does not have to be the same make as the one you are planning to buy. You should also realize that it’s very unlikely you’ll receive a huge sum of money for the trade-in vehicle. This statement is especially true if that car you’re trying to trade in is very old or in poor condition. When you’re unhappy with the trade-in value, you can try to negotiate.

All of this information might be a bit surprising to you. However, you now know so much more about purchasing a new vehicle and the implications that it can have for you. When you go into the dealership, you are going to appear as though you are an old professional at this game.

 

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