Automotive Journal

When people talk about buying a car, they often bring up fascinating stories about negotiating with a car dealer to get the very best deal. About how - despite the dealer’s best efforts to drive a hard bargain - they were able to pay less and get more for their buck. But buying the car is often only half the story. Unless you have the cash to outlay for the vehicle you want, you also need to borrow a certain amount of money to buy it. So too, negotiating a great deal for the financing is often as important as negotiating a great deal for the car.

The first step in your car buying adventure is to do a little accounting. That’s right, it’s time to re-evaluate your spending habits! Buying a vehicle is a costly decision, made more so if you need to pay back principal and interest each week or month. The idea of this exercise is to help you pinpoint: (1) how much cash you already have to buy a car; (2) how much cash you’ll need to borrow; and (3) how much cash you can part with each month to pay back any interest and principal.

Additionally, don’t forget all the costs that are likely to come with owning and maintaining a car. On top of the upfront price and interest costs, also consider insurance, fuel and likely repairs. These are likely to vary depending on the car. For example, a new car will cost much more than a second-hand car. And a sports car is likely to require more insurance than a family car. A large car will have greater fuel costs than a small car. And a second-hand car is likely to cost more in terms of repairs!

When, and only when, you’re clear on how much money you can devote to a car purchase, should you begin searching for a car. Obviously, all the normal warnings apply - car dealers can be quite aggressive and persuasive - so it’s important to keep your wits about you! Also, be sure to stick to your budget. No matter how attractive a given car may be… if you can’t afford it, you can’t afford it. Similarly, don’t automatically accept either a dealer’s or any other company’s promise of supposedly good car financing terms. The simple truth is that you don’t have to accept anyone’s word for anything. You can easily use an Internet-based car loans calculator to discover the best loan for you. There is also plenty of car loans information around to help you distinguish between the various kinds of loans available - whether you’re interested in low interest car loans, no credit car loans, variable interest car loans, fixed interest car loans, and other kinds of credit arrangements.

In fact, you may even be a little more creative in getting the loan you need. For example, if you have a home loan with a lender, they may be willing to re-finance this loan to cover the purchase of your car. Since home loan interest rates are generally lower than car loans rates, this may be a great option for you.

When you have chosen both the vehicle and loan you want, the last step is simply to enjoy your new vehicle. Drive carefully and look after your car, and that way you’ll be likely to get your money’s worth!

Chris Rudolph is a keen blogger and webmaster who runs a number of sites including motoring-loans.co.uk, a car credit uk site