Car financing: three expert tips to help you find your way around
May 04 2020, Lexus Laval
Getting good car financing is not rocket science, except that in the middle of the buying process, it's easy to forget a few basic principles that can help ensure we get a good deal.
Here are three expert tips that should help you make a good deal.
1 - Watch for all offers
To get the best possible financing, it's simple, you have to pay as little as possible for your vehicle. To do so, you must of course take the time to negotiate, but you must also take the time to monitor the manufacturers' offers. But be careful; not just the offers that are advertised, but all those that might be available for a host of different reasons. For example, some offer additional discounts to graduates, certain types of workers, etc. Do your homework to find out how much you can add as a discount to the purchase or lease of your vehicle.
2 - Exchanging your vehicle at the dealership
A popular belief is that you can save a lot of money by selling your vehicle yourself instead. Let's just say that this is far from being the case. What is important to know is that by giving your vehicle in exchange at the dealership when you buy another one, the amount obtained for your vehicle is applied at the time of the upcoming transaction before the taxes are calculated. What's more, you won't have to worry about taking pictures of the model you want to get rid of, not to mention the endless calls and negotiations that can result from a classified ad placed online.
3 - Respect your budget
Having the feeling that you are getting a good deal is above all having the certainty that financially, you won't end up with a bill that is too high to pay once all the contracts have been signed. To do this, it is imperative to respect your budget. In order to establish your budget, it is recommended not to go with more than 15% of your monthly income to pay for a vehicle. When insurance and gas costs are added, the percentage must not exceed 25% of income. Otherwise, you're chasing the trouble.
