Buying the right used car the right way can be a great financial decision for several reasons:
- You’ll be able to take advantage of that “immediate” depreciation that occurs as soon as a new car has been driven off the lot. In just the first year, that can mean as 20% or more.
- If you buy a newer used car, it may still be under warranty.
- Insurance premiums will be lower on a used car than on a new car.
- So how do you choose the right vehicle?
Here are a few things you’ll want to do:
- Establish a budget.
- Determine what vehicles fit within your price range.
- Know the history of the vehicle you are considering. There are a number of services – like Carfax or Autocheck available that allow you to check the history of a particular vehicle.
How do you get the best deal on financing?
One of the best things you can do to increase your leverage when buying a new or used auto is to have your financing pre-approved in advance. Getting pre-approved doesn’t obligate you. But it does give you negotiating power. Whether you are buying from a private owner or through a dealership, finding out ahead of time what you can borrow and securing a competitive rate will prepare you to shop confidently.
There is a misperception that in today’s economy, it is all but impossible to get a loan if you don’t have a perfect credit score. While it is true that the rate you receive on a loan typically is dependent on your credit score, at Cornerstone our credit policies are the same as they’ve always been. It is our mission at Cornerstone to help our members make sound financial decisions and to provide competitive rates and products to support their goals.
Tags: car shopping tips, negotiating an auto loan rate