Planning on making a large purchase like a car?
I recently purchased a vehicle and I want to share with you some of the things I did so YOU can save money.
First off you need to get real and truly see what you can afford. Once you determine that, then figure out what type of car will fit into your budget.
Decide what things are a must have and what things are just wants. If you can afford the wants, then go for it, but make sure you are meeting your objectives.
On a side note, Consumerreports.org is free for some research, but you will need to pay to see the car's full report card. The annual membership is around $25. If you want to check out their Build and Buy car program, each report will cost $13, or you can buy both memberships for $30 and have full access to everything. I paid the $30 for both.
Not familiar with the Build and Buy subscription? Consumer Reports Build and Buy allows you price out your car and get a no haggle price that you can take to a dealership and get that guaranteed price. This service is only for new cars.
Next step is to go to KBB.com , if you use Consumer Reports Build and Buy, it does not hurt to verify the price is a good deal. This site will help you find the Kelly Blue Book value of the car. You can break it down by retail value, CPO certified and private seller.
Now when it comes to buying the car how will you pay for it? Will you lease it? Buy it in cash or finance it?
First I would go to the manufacturer of the car's website and check out any rebates or special financing offers.
If you need to finance your car, don't leave it to a dealership to offer you financing.
First do research, go to your bank and see what's the best interest rate you can get. Also check websites like Bankrate.com to see what the going interest rate is for an auto loan.
Lastly look at your options and crunch the numbers. Utilize free auto loan calculators to help you figure it out.
Here is an example. Let's say your bank is offering a 2.99% interest rate on a new or used car for 60 months. But you can also get special financing through the car's manufacturer at 1.99% for 60 months. Clearly the car manufacturer is the better deal.
Also, there are many websites that have calculators to help you figure out if rebate versus lower interest rate is better, or leasing versus financing. Check out Bankrate.com/calculators .