Friday, 15 April 2016

Financing A Car In A Shaky Economy – Don't Get Trapped

They is no doubt that today’s economic situation has made things a bit difficult, yet in this difficult times it is still possible to finance a car in a shaky economy. Car dealers have over the past couple of years tightened up things in terms of new car purchase financing, but at thesame time they are also struggling with the problem of reduced volume of business so they still have to help people buy new cars.

Apart from the regular or traditional sources of obtaining car finance such as from car dealerships and the banks who have actually changed their conditions to tighten things a bit, one could also explore the option of obtaining car finance through Regional banks, your local lending institutions and your credit unions.

What makes this an interesting proposition is that car dealers also want to get the cars oof their lots and will be willing to offer good incentive to make this happen. these incentives come in the form of lowered interest rates, making lower payments and  reduced the total price to payed over the lifespan of the loan you have collected.

This though comes with a catch, to get the best car financing deals you will have to posses a good credit, so before seeking for car financing you should probably look into your credit report and check for things that are out of place to make it right, now is a good time to start paying your bills on time if you havent been doing so, all this things when done consistently over a reasonable period will increase your credit ratings.

The first thing to do is to go ou there and get the price of the car you want to purchase, once you have done this you can then proceed to a car dealership to get an offer. When you have gotten a firm offer from one dealership, you should not stop there, go to another car dealership to see if they can beat the offer you have already gotten, all they want to do is sell cars and they can certainly go lower than than their previous offer especially if they feel you might go to some one else.

Another potential pitfall you should watch out for is the terms associated with your loan, car dealerships make a chunk of their profits from the interest charged on the loan, so while you are comparing the terms and the different interest rates charged. But remember you dont always have to go through a car dealership, obtaining car financing through a credit union or a regional bank might actually be the best option for you. It all come down to comparing the different rates from all this sources and  settling for the one that falls in line with your budget.

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