Buying a new car is one of the biggest financial decisions and an exciting event in a person’s life. Automobiles enhance our personalities and portray who you are as a person from the heavy-duty Hummer to the crazy copper Cooper.

If you are one of those enthusiastic car purchasers, then paying cash is not the only option available for you. You can get auto finance and make your car ownership dream become a reality.

Thoroughly understanding the different auto finance packages, which are as distinctive as the owners who wangle them, will help you determine the type of auto financing that fits your needs and situation. The two most common and best options for auto financing are dealer financing and financing from a bank or financial institution.

Dealer financing requires you to fill an application form and then everything is taken care by the dealer. This type of auto finance is easier to avail because of the relationship of the dealer with the financial institutions. It is a good option for those who have less than the perfect credit, and also those with an exceptional credit may bargain over the price if they can arrange the loan for themselves.

Whether you obtain your auto finance from a dealer or a bank, there are several factors to be considered which include your credit rating, interest rate, the total price of the vehicle, and the length of the loan.

If your income is not substantial enough to pay the monthly payments or your credit rating is not strong enough to quality you for the amount needed to buy the car you want, than you can consider the option of credit cards and obtaining a co-signer on your loan.

The biggest problem is that people do not prepare themselves for the inevitable haggling before they can drive off with their brand new car.

Below are some tips and tricks for auto finance.

Credit Score

You need to make sure that your credit report is spotless. An employer or income information, references, checking and savings account information, and as much of a down, payment as you possible can afford should be kept handy.

Check with Your Bank

Do not get auto finance through the banks that the dealership works with. You end up paying much more money when you do this. Compare the interest rates offered by different banks and the dealer. Just a couple of percent can mean hundreds off the final purchase price of the vehicle and mean a lower monthly installment.

Stick With Four Years

The period for a loan should not exceed more than four years. Opting for longer years will have a detrimental effect on your finances as you will end up paying much more in interest and other fees associated with loans. Sticking to less number of years will enable you to save a good amount of money and you will not be tied to the bank for what may seem like forever.

The Sticker Price and monthly installment

Never ever, abide by the sticker price being equal to the purchase price. You want the best deal on the final price, which you can always get. Also, never agree to the monthly payment if it is beyond what you expected. Stick to your guns because. Dealerships work with you when pushed to the corner.

Although car buying is a common everyday practice, many new and experienced buyers fail to take the necessary steps. For this matter, car buyers should do their homework, avoid the common mistakes, and follow the tips and tricks for auto finance.

You should not let the dealerships fool you, as there are many other dealerships around who are more than willing to take extra cash from you. You are the person in charge not the sales representative.

Author Bio: Visit http://www.harrisauto.ca for new vehicles and used vehicles and auto financing.

Category: Automotive
Keywords: new cars,new trucks,used cars,used trucks,auto finance