I am looking to help my sister buy a new car soon, and I could use a bit of advice.
Right now we are looking at different models, but what I'm interested in knowing what I should keep an eye out for when negotiating monthly payments and price. Other than those big two, is there anything I should be keeping an eye out for?
Also, can anyone explain APR to me? I've never gotten a good explanation of what that is.
Any other advance would be greatly appreciated. Thank you in advance.
2007-08-13T17:15:22Z
Thank you for everyone's advice so far, but what I am looking for is mostly advice on what to look out for when negotiating a final price. I'm less worried about what car (the model isn't important right now) to get versus the process of how to get it.
Anonymous2007-08-13T17:49:58Z
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First of all please don't be a monthly payment shopper that is the best way to get ripped off. What I would recommend doing is finding out what good payment for your sister is then go on line and use a auto loan calculator to see what price range she needs to be looking in. Then she should compare interest rates at different banks. When she finds one she likes she can get pre-approved for the loan. What my bank does for me is they send me a check to shop with. That way she can shop as though she is a cash buyer getting a better deal. If you don't get financing at the dealer its easier to make sure you are not getting ripped off. The other thing is if she is buying a used car or trading in a car be sure to go to www.kbb.com to know what the values of the cars are. So you can be sure to get all that your car is worth and not pay more than theirs is worth. Good luck!
Never Ever Deal A Monthly Payments With A Car DealerShip. Unless You Want To Get Ripped Off, I Suggest You Get A ProApproval Loan From Capitol One. They Have Great Service. After Getting Your Blank Check With A ProApproved Amount Of Money, You Can Go Find Your Car. I Suggest You Stay Away From Mitsubishi And Ford. Their Newer Gen Cars Are Really Crap Because They Always Have TON Of Engine Problems.
APR Means Annual Percent Rate. It Is Basically Interest You Have To Pay Them Back Because They Lent You Money. For Example, If You Borrow $1.00 With A 500% APR, Then You Have To Pay Back $6.00. Dealer APR Is The Reason Why You Want Get A PreApproved Loan From Capitol One Because They Have Lower APR Rates.
take advantage of information the Internet. It helps when you know what you are looking for and how much it is. Some other tips are don't buy the first day no mater how good the deal is. Trust me its not going anywhere. Try to avoid friendly conversation and even a hand shake with the dealer..their job is to make you feel like a friend but if you make it hard you blow there whole game up. On the second day call and tell them what time you want to came in but then come like an hour early with check book in hand and let them see it in your hand. If your luck the dealer will be busy, let them know you r there but don't have time to wait and leave again. Last thing as soon as they give you the price and play the we have to go talk to the manager..ask why you waisted your time talking to him in the first place. This may all sound mean but it really works. Oddly enough this was taught to me in an interrogation call and i used it on my last to cars and BMW for the wife and Chevy Tahoe for me. I made both wait it out three days and got a better price than i wanted. Good Luck
if you got a 1,000 loan with a 9.9% apr your total in 12 months would be 1,099... divide that by the 12 payments and youve got a rough idea of a monthly payment.
the same can be applied to other loans, just keep in mind there are other fees on top of it.