Automotive Financing, Done Right

Automotive Financing, Done Right


Much has been made in the news of automotive financing lately, as several American car manufacturers drop leasing as a purchase option and raise the credit requirement for people seeking to buy a new car through their financing companies. What was once a routine purchase has gotten quite a bit more complicated, leaving buyers confused and some fleeing to other brands.

A tough credit market and slow sales have also worked to shake up the auto industry, but for the person who wants to buy a new car right now, some of the best deals new carseen in years can be found.

Fortunately, where one door closes another one opens up or in this case other doors already in place are worth going through. If you plan on purchasing a new car before the calendar turns to 2009, then you’ll want to consider the following tips which can help make your transaction as trouble free as possible:

Select Your Model – Consumers who have their eye on a particular model but wonder if financing will be an issue should go ahead and choose that vehicle based on their desire to own that particular car. Chrysler Financial may not offer the best financing deal on your Dodge Challenger, but if you really want the car then get it – financing is a separate issue.

Shop Around – Year end sales are in full swing, but don’t be lulled into thinking that every car dealer has your best interests at heart. Shop several dealers, get their lowest price, and make sure that all incentives are included (military discount, recent college grad, etc.) along with the automaker’s deal and your dealer’s discount. Some dealers will plead poverty when you negotiate with them, but they’re getting their own rebates from the manufacturer when they sell a car to you.

Talk With Your Banker – Your own bank may be the best source for financing your new car, so before your wheeling and dealing gets serious, make a visit to your bank to see what offers are available for you. Banks are in the business of lending money and if your credit is good, then you could be just the right candidate for a loan. The same applies if you belong to a credit union. One note: if your banker isn’t offering you a good deal, then visit the competition to find out what they have to offer to you.

Alternate Leasing – For some drivers, leasing a car is their only option. With GM, Chrysler and Ford making it more difficult – if not impossible – to lease, what options do motorists have besides switching brands? Well, some savvy dealers are working with private leasing companies to come up with packages that might be attractive to you. Contact the financing departments of several dealerships to find out who they are working with, their rates, and other options available to you. If you finance or lease elsewhere, then manufacturer cash discounts are still available to you.

Pay Cash – If you’re in a position to pay cash for your vehicle but prefer to keep your money and finance your purchase, now may be a great time to simply pay cash. Cash is king and dealers know it. You’ll be able to get the maximum discounts from the manufacturer, have an excellent negotiating point with your dealer and be able to drive away in a new car that costs less than the person who had to have someone finance it.

Even if you choose to finance your car now, you aren’t stuck with the same loan for the next 48, 60, or 72 months. You can pay down your loan quicker or refinance your car loan later on when the financial markets stabilize and your personal financial outlook stabilizes. Year end deals makes buying a car now an attractive option, giving you the car you want at a price that cannot be beat.

Adv. — Are you in the market for a new car? If so, nBuy Plaza has everything you need to purchase – repair – maintain – upgrade – reduce – finance – and insure your auto transportation needs. We’re your one stop source for everything automotive!


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Krayton M Davis

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