fincalculatorSmart Car Buying Strategy
Transportation is essential, but it is also one of the largest depreciating expenses in a household budget. Navigating the finance office at a dealership can be intimidating. Dealers often focus on "monthly payments" to hide the true cost of the vehicle or the high interest rates being applied.
4 Steps to a Better Deal
- Know Your Budget: Before you step onto a lot, use the Auto Loan Calculator to see what you can truly afford. Don't rely on the dealer's math.
- Check Your Credit: Your APR heavily depends on your credit score. Knowing this in advance prevents dealers from marking up your rate.
- Short Terms are Better: While 84-month loans exist, they are wealth killers. Aim for 48 or 60 months max to build equity faster.
- Compare Incentives: Manufacturers often offer "0% APR" or "$2,000 Cash Back". Use our comparison tool to see which one actually saves you more money.
Buying vs. Leasing
Leasing is attractive because it offers lower monthly payments for a premium vehicle. However, leasing is essentially a long-term rental. At the end of 3 years, you have no asset to show for your payments. Buying (financing) usually costs more per month, but eventually, you own the car debt-free.
Rebate or Low Interest?
Don't guess. The math is often counter-intuitive. A small interest rate reduction can often save thousands more than a flashy cash rebate.
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