Car Prices Blogs


Helpful Ways to Negotiate the Price of a New Car Part 5

November 7th, 2011

Nobody can deny the unmistakable appeal of that new car smell. A quick whiff is all it takes to calm your mind and prepare you for the smooth journey ahead. Before dozing off to dreamland, remember that buying a car is a huge responsibility that will require your complete dedication in terms of monthly payments. Not everyone can buy a new car with cash nowadays and a majority of new car buyers will have to settle for financing the car of their choice.

It is in this regard that we present to you part 5 of the series on the helpful ways to negotiate new car prices:

Tip 1: Financing a car may sound as simple as it seems but you need to choose the right type of financing scheme. Car dealers will be able to offer you a variety of financing deals that depend on your capacity and capability to pay. Want to pay the lowest monthly rates? Choose a low monthly scheme (which, in turn, will require you to make a HUGE down payment or advanced deposit at the beginning of the term.) Want a lower interest rate? Try choosing a financing deal that will allow you to make a higher down payment instead.

As a rule of thumb, it is best to choose a new car financing deal that is no longer than 48 months or four (4) years in length. Why? Because you would not want to spend additional money on maintenance and repairs while you are still paying for the car. Remember that a longer financing term (some that can even reach up to 60 or 72 months) may sound enticing and cheap but this does not mean that you are saving money altogether.

Tip 2: Avoid zero-down financing schemes. These types of new car financing offers also sound too good to be true..and they probably are. Keep in mind that your down payment will help lower the financed amount, meaning that there is less of an amount that will need to be amortized over the term of the deal. If you decide to choose a zero-down financing scheme then you need to be prepared to meet the consequences, namely higher monthly payments due to a higher interest rate and higher capitalized cost.

More to come soon. In the meantime, check out the latest and most up-to-date new car prices and find the best deals along with the actual invoice price of the car that you like. This will help you determine which car dealer offers the best and lowest financing deals in town!