Know how is half the battle when buying a new or used car
How can a person know which car to buy and just exactly what they qualify to buy? I have some simple tips to help you get the car you deserve.
Car Shopping Tip #1 – Credit Worthiness
Know your credit worthiness. Research by using creditkarma.com and getting your credit score. The only caution here is the formula used by Credit Karma is about 40 to 50 points higher than in real-life. I know this to be true because I look at my score at Discover.com and Credit Karma and the latter is always fifty-points higher.
To buy a new car your Credit Karma score should be 650 or higher. If it is lower you can still get a new car but may need a cosigner, a large down payment or both. Otherwise focus on a used car with lower mileage.
Car Shopping Tip #2 – Trades
Your car is worth more retail than wholesale. So take a month and try to sell it yourself. You can look up its’ value at Kelly Blue Book (kbb.com). Market the car yourself through craigslist.org and by putting a for sale sign on it with your phone number. One caution with craigslist.org is there are scammers who will try to beat you out of your money/title. Only take cash, in person and do not take a certified check.
If you can’t sell your car take it to the dealer where they will pay you the wholesale value of the car. Before you go, clean the car and fix minor details. Clean the interior, engine, and any visible deficiencies. The car does not need to be paid off; the dealer will pay off the car and give you everything you are credited above the payoff amount.
Call your finance company and get the 10- day payoff and the per diem. Bring that information to the dealer. If you have negative equity, that amount will be added to your new or used car loan.
Car Shopping Tip #3 – The Deal
I recommend you visit Google and read the reviews before going anywhere. My dad used to say “you can’t make a good deal with a bad guy.” This is true. If people are saying the dealer is no damn good then move on to the next one. I myself maintain a perfect five-star rating with Google. If you are in the Sussex County, Delaware area or Delmarva you can call me at 443-252-6170 (cell) and I will help you.
The car deal continued…
Find the car you want to buy and research its value online. Then with the Blue Book Value and the online information come in to test drive the car. Please pick a car that meets your realistic lifestyle. Getting a race car will not meet the families expectations. Even if you want a race car. So pick appropriately.
Bring your registration to your trade, insurance information, title, and drivers license to the dealer.
Car Shopping Tip #4 – Financing
Congratulations you bought a car but there are a few things you should know. One is how much the payments will be. Wouldn’t it be nice to know before you got to the dealer! So use this general rule to determine how much your payments will be and the rule is this:
550 – 600 = $20 per month for each $1,000 borrowed over the course of the loan. (Average)
601- 650 = $19 per month for each $1,000 borrowed over the course of the loan. (Average)
651 – 700 = $18 per month for each $1,000 borrowed over the course of the loan. (Average)
701 – 750 = $17 per month for each $1,000 borrowed over the course of the loan. (Average)
751 – 800 = $16 per month for each $1,000 borrowed over the course of the loan. (Average)
801 – 900 = $15 per month for each $1,000 borrowed over the course of the loan. (Average)
Of course this isn’t exact and is only meant to give you an idea of what financing can look like. Please deduct your down payment from the amount financed.
Car Shopping Tip #5 – Make an Appointment
Call me if you are in the area. Otherwise call your local store after your research. Make an appointment and allow 3 – 6 hours for negotiations and settlements.