Car Loan Sense

Getting an auto loan for a car is a big deal. Before you agree to pay all that money back with interest, it helps to carefully think through your purchase. Here are some tips that can help you find the best deal for your car loan dollar:

• Research. Figure out how much the car you want usually sells for. You want to make sure that you are not getting ripped off. Know the retail, wholesale, and private seller values of the car you are looking for.
• Find out about possible rebates and special financing options for your car loan. This can help you get a good price on a car.
• Take it for a test drive. Try to get some highway driving in as well, since the higher speeds can affect the car’s performance differently from driving in town.
• Have the dealer get a CarFax report for you. You can get one yourself if you need to (if you are buying from a private seller), but it will cost you money. Most dealers will pull the report for free. If they won’t go elsewhere.
• Negotiate on the price. Find out how much a dealer pays for cars and negotiate up from the invoice price. You will get a better deal than if you negotiate down from the retail price. With a used car from a private seller, negotiate up from the wholesale value.
• Stay away from the “extras.” There are all sorts of things a dealer will try to throw in at the end, including “protection” and things like special “window sealant.” Try to avoid these things. Paying for a service contract is not a bad idea if you plan to keep the car for more than four years.