| Your credit
may be costing you the car you want!
Author: Mechel
Glass
When making a car purchase whether it is a new
car or one that is pre-owned, doing a little research is going to be your key
to getting the best deal! Don't walk into the dealership hoping that you will
qualify for one of their specials after you have 'fallen in love' with the car
after the test drive. Follow these 10 simple steps to use your credit to your
advantage!
1. Find out your credit score. Finding out your credit score
now will save you any surprises once you try to qualify for your new car loan.
2. If your credit score is not what you think it should be, pull your credit
report for free at www.annualcreditreport.com
Dispute anything that may be inaccurate.
3. If your credit report is
accurate and your score is low you may want to take some time to improve your
credit score (FICO score) before you try to get financing for your new car. If
you are trying to finance the entire portion then a good credit score is very
important.
Go to www.myfico.com to
see how you can improve your score. Some basic rules to follow: Pay your bills
on time, catch up on any bills that are past due, pay down your credit card debts
by paying more than the minimum. Do not open new lines of credit and do not close
credit card accounts after you pay them off. Dispute any items that are inaccurate
on your credit report.
4. Decide upon the price you want to pay each
month for your car at www.bankrate.com or
www.carsdirect.com to use their Auto Payment Calculator.
5. Continue
to do your research on the internet first before you visit the dealer. The purpose
of doing this is to prevent 'falling in love' with the car once you test drive
it. You want to know everything about the car so that you can get the best deal.
Visualize how you will be using the car to ensure it meets all your needs. Start
with the manufacturer web site and visit www.carsdirect.com and look at all aspects
of the car.
6. If the new car price is too high visit sites like www.CarMax.com
to view models that are one year or two years older. If you decide to purchase
a previously owned car be sure to find out the car's history before you buy. Ask
to see the car's Vehicle History Report. Pay particular attention to cars that
may have been flooded in Katrina and shipped elsewhere.
7. Now that you
know what you want to pay and can afford to pay for a car. Look at models within
your price range. Narrow down your list of potential cars by comparison shopping.
Make a list of pros and cons for your top picks. Narrow your choices down to two
or three models and be sure to look at one or two year old body styles for the
car you like to see if those are appealing to you as well. Check www.kbb.com
which is Kelly Blue Book web site to see the MSRP, Invoice Price, and Blue Book
Value which is what customers are really paying for the car. Compare your top
picks on this website.
8. After you have narrowed down your top favorites
and you know what other customers are paying and your credit score is where you
think it should be, Secure Financing at your Credit Union, Local bank, or Internet
Bank. Many times the advertisements of zero percent financing by the dealers is
only for those people with very high credit scores. Call the dealers and ask them
what special financing plans they are running at this time, if you have a good
credit score you may be able to qualify for these deals. .
9. Also visit
www.carsdirect.com as they offer financing if you have good and not so good credit.
Again if you Fico score is not as high as you would like take some time to follow
the steps on www.myfico.com to improve your score before you apply for a car loan.
If you can not wait, compare deals that are offered to you from your credit union,
local bank, or internet bank and get pre-approved for the car loan. This way when
you go to the dealer pre-approved for the car and armed with all of your research
material on what the car should cost you, you will be in a better position to
talk with the sales person.
10. Final Step: Go to the dealer with a friend
and test drive your car! Go with a friend so that you feel more comfortable to
negotiate the best deal and able to walk away if the price they are offering is
not close to what you have researched. Taking the time to do a little research
ahead of time, before you go to the dealer, can save you hundreds of dollars!
Knowing your credit score and knowing how much you can afford will prevent you
from getting stuck with a car that is too expensive for you to keep or feeling
as if you have to take whatever financing options the dealer gives you to get
the car you want. Written by Mechel Glass,
President Beat Debt, Inc. www.beatdebt.com
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