Are you looking to buy a car? Shopping for a new ride is easier than ever. You can easily find the model you want, make a CarMax bill payment online to cover your loan, and drive into the sunset! But before you get too excited, there are plenty of ways to do things wrong.
Many inexperienced car buyers make mistakes that cost them more in the long run. To avoid that, follow these tips. Get Preapproved First Before you set foot in a dealership, it pays to get preapproved for a loan. The biggest reason to do this is that it acts as a bargaining chip and forces you to answer essential questions. Getting preapproved sets limitations on how much you can afford. You can get an estimate about how much you'll pay when making a CarMax bill payment online, helping you shop more reasonably. The preapproval can also net you a better deal when you start shopping. Dealerships don't have to offer you a low rate on their loans, even if you qualify for them. Dealer loans often come with a higher interest rate, forcing you to pay more over time. Preapproval, however, can encourage dealers to offer you a better rate to beat the lender that preapproved you. If it's a better deal, you can save more than you initially thought possible. Hold Your Cards Close at the Dealer The worst thing you can do when visiting a dealer is to tell the salesperson too much about your plans. Dealers are trying to make as much money as possible. They'll use every bit of information you provide to do that. Avoid talking about your trade-in plans. If the salesperson knows you're trading in a vehicle, they might lowball their offer to make up the difference for a good deal on your new purchase. Do your research and keep your cards close to have all the bargaining power. Avoid Long-Term Loans Finally, don't be tempted by those long-term loans. The recommended term length is 60 months or five years. There's a growing trend towards six- and seven-year loans. While they have the allure of lower monthly payments, they also come with higher interest rates. As a result, you pay far more than the car is worth. Read a similar article about progressive bill payment online here at this page.
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AuthorEmily Clarke writes about cash advances, overdraft protection & finance apps. ArchivesCategories |