Best ways to buy a new car??

[Pomlover2586]

DH and I will be purchasing a new[ish] car within the next year or 2. We are probably going to get a Ford Escape- no older than an 08. I'll probably trade in my car at the time, as it is a convertible and not family friendly- while DH's car is. Trade in value 3 maybe 5 k?

We will probably have some cash for a down payment as well 2-3K? The rest will be financed.


So for a financed car how much do you guys generally put down on it? Either cash, trade in value or a combo thereof? Do any of you finance the whole shebang?

This will be the first time I've ever done this.....and DH's second- though both of out first time as a married couple. Any ideas appreciated!

 

[IDoDis]

We always save until we have enough money and then pay cash. However, I do know that the shorter the loan period, the lower the interest rate you can get. Do you belong to a credit union? Check with your bank or credit union for their rates and get a pre-approved loan. They'll tell you how much you can borrow and let you know what the payments would be based on the amount you borrow & term of loan.

When you go to the dealer, don't tell them you have your own financing until the price is negotiated. Don't buy on a monthly payment. Buy on a bottom line, out-the-dorr price. Then, see what they can do for your on a loan with the same length. If the dealer can beat/match the interest rate, go with them. If not you can go pick up a check from your credit union or bank.

 

[The Mystery Machine]

Sell your car privately and don't go in with a trade-in.

 

[manning]

Edmunds.com and KBB.com (kelly blue book)

 

[dakcp2001]

DO your research on the four square worksheet that car salesmen use. They sneak their profit in those 4 areas, so know what they are before you go.

Do not get your financing through the dealer, do not let them ask you "how much do you want to pay a month" only deal in the actual price of the car. ANd do not give them your trade in until after you negotiate a sales price on the car.


Research will be your best friend, find out what the dealer pays for invoice and find out what other people are paying for the same model on edmunds.com forums. If you buy a used car GET THE CARFAX even if the used car is from a dealer and has low miles, you can see if it got traded in after having an accident.


This is all advice I got from here on the budget board, and it saved me a ton! FYI I just did a private sale on my used car and i will NEVER do that again. It was a huge hassle and took a lot of time. I got more money for sure, but well, it was a lot of test drives and took a lot of time. I will not do it again.