Automotive

Financing Your Car – Doing It the Right Way

You can save a lot of money when financing your new car if you’re doing it the right way, and we’ll teach you how. Basically, it all comes down to being aware of your credit score and using that as leverage to pull in the best loan offers available. So, when you’re looking for a new Cactus Citroen for sale, you’ll be able to get the best deal possible without placing a burden on your budget.

Always include the cost of auto financing

Believe it or not, a lot of car buyers still forget to include the cost of auto financing in the total price when they’re trying to negotiate what to pay for a new car. For example, let’s say you’re interested in a new Citroen Picasso for sale, and the difference between the sticker price and the invoice price is around $2,000. If you use that during the negotiations, you can even get a $1,000 discount (or more) on the price of the car.

You should also calculate what you’ll be paying at different terms. To illustrate, let’s say you’re looking to get financing for a new C4 Citroen for sale. If you go for a loan offer that gives you the car for 4 years at 6% interest with no down payment, you might think you saved money, but then you would be paying over $2,500 in interest alone. The other loan offer that lets you do three years at 4% interest, but with a $1,500 down payment will be the better deal by comparison as it saves you around $1,000.

Understand your credit score

You should always check your credit score first before you even start visiting car dealerships. Once you have this information, you can then determine which car loan rates are the best for you. Remember that Cactus Citroen for sale you’re looking at? Your credit score will be checked by the Citroen dealership to figure out if you qualify for a car loan and how much interest you’ll be paying. If you already know your credit score, you will know whether the dealer is giving you a reasonable, fair offer or if they’re trying to rip you off.

Keep the loan terms as short as you can possibly afford

We know; a shorter loan term such as 3 years will require you to shell out bigger monthly payments as compared to a 4-year or even 5-year loan. However, the huge dealbreaker here is how much interest you’ll be paying with a 5-year loan term compared to 3 years. Basically, you should always go for the shorter loan terms with the lower interest rates. This is because the longer it takes you to pay off the loan, the more interest you’ll be paying. Additionally, some banks will charge you bigger rates for longer loans, so you’ll end up paying a lot more.

Always put money down

Let’s say you’re in the market for a new Citroen C4 or looking for used Citroen vans for sale. Even if they’re offering you 0 down payment, remember that there’s always an advantage to giving a down payment when buying a car. It all boils down to this: the larger your down payment is, the lower your monthly payment will be. Plus, there’s a very good chance that you’ll be enjoying a lower interest rate on your financing as well.

If you’re interested in buying a new Cactus Citroen for sale, or any other car available on stock, talk with the financing professionals at Brisbane City Citroen to get the best deals for your budget, whether it’s auto financing or insurance. To get started, visit them at https://brisbanecitycitroen.com.au/news-reviews/news-display/new-citroen-c4-cactus-revealed-on-sale-late-2018,24.

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Gabriel
Geek that loves minimal and harmonious designs. I'm learning Japanese.