Monday, October 20, 2014

Financial Tips for Your Next Car Purchase


If you're a resident in the great Garden State, it's safe to assume that you rely on a car as your main form of transportation. You'll try to keep your car running for as long as possible, but will eventually have to get rid of your old ride. Getting a new car isn't just a major purchase; it's something that can drastically impact your financial situation. There are plenty of car dealers in southern New Jersey, but if you go in to buy unprepared you could pay more than you have to. If you're in need of a car and not a financial crisis, keep this advice in mind as you shop.

Learn the value of your old car

If you're getting a new car you probably think that your old one is piece of junk, but virtually every vehicle has some kind of value. Even if your old car is a bit beaten up, a charitable organization may still be willing to take it. You can also consider selling it to a scrap yard. The scrap metal business is booming, and you could take home a couple hundred dollars if you find a good deal. There are a lot of online sources you can use to determine the value of your current vehicle. The best source to find the value of your trade in South Jersey is your local car dealer since they buy and sell cars all every day.

Think about your budget realistically

If you're only making $35,000 a year, a car that will cost $20,000 may be out of your price range. When you take what you can afford into account, don't just think about the initial price you pay for the car – think about how much you'll pay for gas, insurance, and maintenance like oil changes. Suddenly, setting your sights on a $300 car payment for the most popular model can be a little unrealistic for today’s market.  You may need to weigh your wants & needs in order to get a vehicle that satisfies your needs and meets your budget.

Don't fret over the monthly payment

When some people shop for cars, they make the mistake of focusing too much on their monthly payment. Though it's important finance-wise, the amount of interest on your loan is equally important. If you find a car that has a low monthly payment, but involves a high-interest loan, you will be paying more in the long run and the deal may not be worth it. Remember when you are comparing prices dealer to dealer be sure to read all the fine print so you can compare apples to apples to ensure you are getting your best deal. There are many ways that numbers can be manipulated.

Try to sweeten the deal

A lot of dealerships offer incentives for their customers, such as free maintenance for a year or two or complementary oil changes for the first 10,000 miles. Sometimes, these services can be worth it if you're trying to be cost conscious. Always ask to see what they offer, and see if they'd be willing to throw in any services to sweeten the deal.

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