Financing A Car In Todays Economy
Financing a car is not as difficult as you might think, even with the present state of the economy. In fact, as car manufacturers face declining sales, they are more prone than ever to help you get into a new vehicle. That’s why they will go out of their way to help you in financing a car.
Additionally, regional banks, credit unions, and other financial institutions are good sources for financing a car. Major banks do not have as much leverage to make these small loans at the present time.
Because the car market is so slow, now is a better time than ever to purchase a vehicle. There are a number of rebates and incentives. These include low rate financing terms.
Be prepared to go to a number of different dealers and showrooms to find the best deal. Then, negotiate on the price. Check the internet to see what the dealer’s price is before you go to the showroom so you will know how much wiggle room the salesperson has. Then, don’t let up when it comes to financing a car – many car dealerships make most of their profits from the financing side. If you do finance through the dealer, you should expect them to lower their base rate for the car.
Sometimes dealers offer low financing rates for a certain car. In this case, they may not be willing to negotiate much on price. This is because they’ve lowered the sales price of the vehicle in order to get you into financing a car under their terms.
You should also know that if you are considering purchasing a new car, the current makes are more fuel efficient than ever. That can be important to the frugal buyer if gas prices begin to rise again.
Some people believe they are being frugal to keep an old car. But, in reality, a new car could be safer, require less maintenance, have better features, get better gas mileage and cause less pollution than your comparable current vehicle.
There are some attractive leases that make financing a car this way an option, but the terms vary depending on the manufacturer, the model, and even the lender.
It is a good time to be buying a car if your budget can handle it right now. That’s because there is a slowdown in manufacturing at the moment. If the economy improves, there will be more demand in the future which the current production levels will not be able to meet. At that point, you can expect to pay more for a car than you will now.
One of the reasons that the government is willing to bail out American car manufacturers is that vehicle sales make up 20 percent of the retail market. If car sales dry up, the economy will be in even more trouble than it is today. So, consider financing a car today.