How to get the best car deal

Ditching the old car you’ve been driving for years and sitting in a brand new model brings you joy, right? But this hefty financial decision would cost you a fortune even if you’ve been saving heavily for the last few years, and if not, you’ll probably need to analyze different car loan options.

The first vital step towards taking a car loan is that you estimate your earnings, deduct the expenses from them and see you much you can borrow and then repay without going into a financial panic. You’ll also need to calculate the interest rate prior to taking a car loan.

Financing Through A Dealer

Getting a car on loan through a dealer looks like an easy option, as the conditions are most lenient and the interest rate is apparently lower as compared to the other loans.

But there can be a catch in these offers. You might end up paying much more than the actual price of the vehicle if you choose this method. So, you better do all the calculations and get a rough estimate of the price you might be paying the dealer before signing.

Car Loans

Almost everyone is aware of this conventional method, it is usually recommended https://www.thebalance.com/car-loans-4073341 by most of the experts as it is a well-known thing. Car loans also have 2 types, a secured car loan, and an unsecured car loan. Both have their very own pros and cons.

You’ll have plenty of options if you choose to take a car loan. Many banks, credit unions, lenders and dealers provide car loans.

Owning a car is what gives you the comfort and luxury and of traveling with your friends and family in peace, there is no second opinion to this. But buying a car is one of the most considerable decisions that you’ll ever make. And many people end up regretting this decision.

So, completing your homework before buying a car can really pay off. In fact, the homework should start well before your final decision of buying the car of your dreams. You can also read the nightmare of someone else and prevent replicating the same in your case.

Car Depreciation

Depreciation is the sad thought about all the vehicles, but some might even age well, while some might end up depreciating very fast. Any depreciation up to the 14% mark is considered safe in the car industry, while anything above this is definitely concerning. Especially if you get a car on loan, you can still be paying the same initial price plus the interest rate on a depreciating vehicle.

You can only beat depreciation by buying a limited edition car (a collector’s item from a major brand). Otherwise, consider this as the necessary evil.

Leasing A Car

Leasing a car is a good option if you are going to use the vehicle for business purposes. Leasing a car is like renting it from your employer. The lease payments can also save you some tax if you’re going to use the car for business reasons.

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