| 100 Things You Must Do If You Want To make the | | | | credit rate allows you to determine the interest you will |
| right deal for you!by Chuck Norlin | | | | pay on a loan. Dealers mark up the interest when |
| Are you armed and prepared to buy your next | | | | putting your loan together. A dealer could get you a |
| vehicle? Do you have a "to know" list that | | | | rate of 7% and then charge you 12% on your contract, |
| will guide you through the purchase process, and save | | | | which when multiplied out for 3, 4, or 5 years is a huge |
| you hundreds, even thousands of dollars? Are you | | | | difference in dollars. On $30,000.00 for 5 years the |
| prepared to state your position and deal in facts, or | | | | difference is about $4200.00-that's your money! |
| are you going to fly by the seats of your pants deal | | | | 4. Interest Rates. |
| with guesswork and bravado? It is your choice, but it's | | | | Do you know what the current best interest rates |
| also your money, and it is your responsibility to protect | | | | are? Do you know what rate you qualify for? How |
| it! There are a multitude of factors involved in the | | | | does knowing that information save you money? |
| making of a car deal, let's explore a few of them here. | | | | Interest is a variable. Interest can be shopped, just like |
| 1. Invoice. | | | | a car. Interest is an adjustable thing, the dealer pays |
| Do you have any idea what the actual invoice is on | | | | some amount, you pay the dealer more than that in |
| the vehicle you are about to buy? Do you even know | | | | most cases. |
| where to find that information? If you do know, did you | | | | Banks have interest rates. Credit Unions have interest |
| price out your vehicle with all the options? | | | | rates (usually the best except for the special factory |
| You must know what the cost is on what you are | | | | rates). Loan companies have interest rates. When you |
| buying, and then know what to pay above that cost to | | | | know your credit score and shop the rates you save |
| own it. Many vehicles have thousands of dollars of | | | | money. Your credit standing is the instrument that |
| profit in them, do you want to pay all that money for | | | | determines your rate, it is your right to obtain the best |
| yours? It's your money, and it serves you well to | | | | rate and have a lower payment-it's your money! |
| protect it. | | | | When the deal is completed, the papers signed, and |
| 2. Blue Book Value. | | | | the vehicle is in your driveway, did you buy or were |
| Do you know how to determine the value of the | | | | you sold? Were you in charge or were you just along |
| vehicle you are trading? Do you know why knowing | | | | for the ride? Did you know the deal going in, and |
| the vaue could be worth several thousand dollars to | | | | coming out, or did you fall prey to the "tricks of |
| you? | | | | the trade" and overpay thousands of dollars? |
| Your vehicl represents cash dollars, just as though you | | | | The truth is anyone can make a car deal-ANYONE! A |
| had money in an envelope. Would you hand a dealer | | | | fifth grader could buy a car, you don't have to have a |
| the envelope as a down payment on the vehicle you | | | | complete education to buy a car! BUT-what about |
| are purchasing without knowing the exact amount of | | | | getting a "best deal"? What about knowing |
| money in your envelope? Would you trust a stranger | | | | ahead of time where you are and what you can do? |
| to tell you what that envelope was worth, or would | | | | Now that takes a little education, a gathering of facts, |
| you count the money twice to know exactly what you | | | | a little preparation, and a strong dose of application. |
| have, and then count it out with the dealer and get a | | | | Would you go fishing without a hook? Hunting without |
| receipt for the correct amount? Would it be better to | | | | a bullet for your rifle? Would you go into the desert at |
| have an idea what your vehicle was worth before | | | | 125 degrees without some information as to how to |
| you traded it in? Probably! | | | | survive? |
| 3. Credit Rating. | | | | A good deal is not a happy feeling between your ears, |
| Do you have a current 3 bureau credit check? Do you | | | | that's foolhardy. A good deal is fact based business, |
| know your credit score(s)? Do you know what having | | | | information gathered, a PLAN. You can do that, and |
| that information means to you and how to use that | | | | you will save hundreds, even thousands on your next |
| information to save money? | | | | car deal when you are prepared, and ultimately |
| Your credit standing determines the price (interest) | | | | empowered. |
| amount) you will pay to borrow money. Knowing your | | | | |