• Things to Keep in Mind When Searching for a Car

    A lot of individuals today who are planning to buy a car are looking for ways on how it would be easier to do a car search by price. If you are one of these individuals and are confused as to how to go about looking for a car to buy, then read on. Here are some car buying tips that would surely help you out whether you are first-time car buyer or not.

    Your Estimated Budget

    This is basically the most important factor as you set out to do a car search by price. Having a good idea of how much available funds you have for the purchase of a car would give you a good start on your search.

    Used or New

    When searching for cars by their price, you would first need to decide whether you want to get a used or a new car. Obviously, they would be priced differently and by figuring out if you want a new or a used one, you would be able to come up with a reasonable price range to can stick to.

    If you choose to get a used car, you may want to consider overall quality and condition, the number of previous owners the car has had, if the car has been involved in any accidents, the number of minor/major car repairs that it has had and any previous or known mechanical problems.

    Now, whether you are planning to buy a new or a used car, it is important to make sure you already have your financing and loans approved. Once you make your decision, you can continue on with your search, which would be narrowed down to less choices.

    Mileage

    As you search cars by their price, you might also want to compare the mileage rating of the cars you are considering. The EPA mileage rating can be used as a way for you to know how much it would cost to use the car. Generally, it is better to get a more efficient car that has better mileage.

    Your Manufacturer or Model Preference

    This is also an important factor as you do a car search by price. Although you would be comparing cars which are more or less in the same price range, knowing what manufacturers and models you prefer would help narrow down the search even more.

    Where to Look

    These are just some of the essential things you would need to keep in mind as you do a car search by price. There are plenty of places where you can start looking for a car to purchase. You can always try browsing online classifieds first, such as eBay and other online car dealerships, and you can also go to car shops and dealers offline. Other options could be to search your local newspaper and car magazines for listings. Wherever you choose to buy, make sure the owner or dealer is reputable and is disclosing everything you need to know about the car.

    Car Rebates

    Car rebates are offered by manufacturers to help lower the selling prices of vehicles that may be in limited demand or those that may be due for replacement with new models. New car rebates are normally passed directly from the manufacturer to the end customer by way of the dealership, so all dealerships should quote rebates and other manufacturer-to-customer incentives without pause. This guide introduces how car rebates work, why they are beneficial and why it may not always be best to take the rebates offered by a manufacturer.

    A manufacturer’s rebate on a new car is deducted from your selling price by the dealership, but it is important to remember that discounts coming by way of rebates are in addition to the great price that you negotiate with the dealership. You should always try to negotiate a price close to invoice prior to deducting the rebate. When you purchase a new car that has a rebate available, the dealer will deduct the rebate amount from your price, and the dealer will later reapply for reimbursement form the manufacturer. In most states, new car rebates are deducted from your bottom-line price; that is, rebates are a final deduction that comes off of your post-tax subtotal. In this sense, you must pay your state sales tax on any rebates that are offered. Any other discounts that are offered as manufacturer-to-customer incentives, such as loyalty offers or bonus cash, are also taxed similarly and are effectively considered rebates.

    Rebates are beneficial to new car customers in many ways. Not only do they lower your price on a vehicle, they can also make it easier to secure financing. For example, it may be difficult to secure financing for more than 100 percent of the MSRP of a vehicle. However, by taking advantage of rebates and negotiating a great deal with a dealership, you can lower the amount financed to well below 100% of the MSRP. In turn, you may qualify for a more favorable loan and potentially a lower interest rate. Taking advantage of rebates will also result in a lower balance financed, so your loan payoff will be lower if you decide to trade your vehicle in or if you decide to sell your vehicle to a private party before the balance is paid in full.

    Alternatives to Rebates

    While taking a large cash rebate may seem like the best option, it is important to check if the manufacturer is offering any alternatives to the rebate. You may find that the manufacturer is offering low-APR financing for up 72 months. While waiving the rebate may result in a larger amount financed, your lower rate and the extended term can help you lower your payment even more. However, take note that a long-term low-APR loan will be most beneficial only if you plan to keep the vehicle for the entire term of the loan. The higher payoff balance may make it difficult to trade your vehicle in and finance the negative equity. In this case, it is best to choose the new car rebate.