Getting a New Car? Tips on Financing It

Buying a new car is such a large purchase that many people do not want to make the decision and just hope for an offer from their current car dealer. But if you are considering buying a new vehicle, it’s essential to know some of the secrets about financing it. First off, you should get insurance before going into any dealership’s lot. Second, whenever possible, buy used cars instead of new ones. Finally, when at the dealership, keep things simple: don’t buy any add-ons there (they will be cheaper elsewhere), and beware of long-term loans with monthly payments over six months.

Photo by Stephan Louis from Pexels

Get Insurance Before You Step in a Dealer’s Lot

Insurance is critical when you buy a new car. If something happens to your old car, and the other party doesn’t have insurance, then it’s unlikely that they’ll pay for any damages. The best way to make sure this never happens is with good insurance coverage on both your current vehicle as well as the one you’re buying. 

This protection will cover damage in an accident or theft and help protect against liability if there are injuries involved.

Whenever Possible Get a Used Car

The easiest way to finance a car is using the cash for cars technique. Once you find one, financing will be easier, and the dealer will usually offer more generous terms than if you buy new. 

You will always get a better deal on used cars, and there is more of an opportunity to negotiate. Plus, it’s relatively easier to maintain the car than a brand new car with hard-to-get spare parts.

Of course, as time goes by, more recent models come out that may suit your needs, but if not, go with a used one. 

Keep It Simple at the Dealership

Only buy the car. Don’t do anything else in the dealership! Find out what is best for you and your family and get that one thing before moving on. The last thing you need when looking for something affordable is distractions from sellers and other customers.

Don’t Buy Any Add-Ons at the Dealership

Buying add-ons at a car dealership can be very tempting.  The salesman might seem like he’s doing you a favor by throwing in some extras, and the saleswoman may offer to help with your financing paperwork if you’re buying an expensive vehicle. However, these “extras” are usually just tools for getting more money out of potential customers. 

Instead of feeling obligated to buy them because they’re offered up on a silver platter, politely decline every time someone suggests adding something new. You’ll feel much better when it comes time to sign that final purchase agreement knowing there was nothing sneaky added into the deal after all.

Beware of Long-Term Car Loans Above Six Months

Beware of long-term car loans for more than six months. The longer the term, the bigger your total payment will be over time. So when you see an advertised monthly figure that’s lower than what it would cost to buy a new car outright, this could be one reason why.

If possible, try to borrow for less than six months at a fixed rate and ensure there are no hidden costs like points or fees added in as part of the price tag. 


In conclusion, it’s essential to know the secrets behind financing a new car. It’s easier than you may think and will save you money in the long run.

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