| You have done your research for that new car you | | | | Do not fall for it, at least not until you have done |
| want to buy. You have narrowed down the choices, | | | | your homework. In fact, this is a part of your |
| checked the gas mileage ratings, checked the | | | | homework that you can do prior to even setting |
| maintenance history, checked the typical resale value, | | | | foot in the dealership. Do your homework and |
| and gotten opinions from others about the various | | | | perhaps even get pre-approved from a lending |
| local car dealerships that offer your choice to | | | | source before you go to the dealership. More often |
| understand the rating they get for post-sale service | | | | than not, if you tell the car salesman that you have |
| and support. | | | | already been pre-approved for financing, you can |
| But do not ignore an aspect of this whole thing that | | | | often get an even sweeter deal. But by all means, do |
| is probably every bit as important as the actual make | | | | NOT tell them how MUCH you are approved for, |
| and model of the car that you choose, which is | | | | since then he will feel obligated to get as close to |
| financing the car or truck with the best deal possible | | | | that amount as possible. |
| on a car loan or truck loan. You need to gain some | | | | While it may be attractive to get a 6 or 7 year car |
| knowledge about financing if you do not understand | | | | loan, perhaps even longer, when you look at the |
| long-term financing, because the whole deal with | | | | monthly payment figure, this is rarely a good deal |
| financing is that you have more options than you | | | | based on the amount of interest you are going to be |
| think you do, and even options that look identical on | | | | paying. You need to look at what you have paid for |
| the surface, like cars, are entirely different when you | | | | the vehicle at the end of the loan period. For |
| take a peek under the hood. In other words, getting | | | | example, on that $40,000 new car on car finance |
| the best car loan or truck loan, whether a new car or | | | | plan 1, you might have paid a total of $55,000 for it, |
| truck, or a used car or truck, is MUCH more than just | | | | including interest, whereas on car finance plan 2, you |
| the monthly payment amount that you are quoted. | | | | only paid $48,000 for it. That is an extra $7,000 that |
| Of course the car dealerships anticipate this. You are | | | | went flying out of your pocket needlessly, and I |
| in the spotless showroom with the free coffee and | | | | know you can think of better uses for $7,000 than |
| the shiny new vehicles on the showroom floor just | | | | the toilet. Yes, the interest rate alone can indeed |
| itching to be driven by you, and your right foot is | | | | make that much difference. |
| already twitching with the thoughts of getting this | | | | Bottom line: do your car financing and truck financing |
| baby on the road to see what she can do. So the | | | | homework as carefully as you did research on what |
| car dealerships have "guaranteed financing" programs | | | | type of car to buy, and you can save a ton of |
| already setup, all you need to do is sign your name | | | | headaches, as well as keeping much more of your |
| and the car keys will be in your hand. | | | | hard-earned money in your wallet. |