This is going to be my first time buying a car and I want it to be a nice one.
Should I go through the bank or through the car dealership to find someone to take out a loan from?
And when it says for me to put down a down payment, does that money come from my pocket or can it come from the loan?
yeah, sorry these are lame questions but I’ve read so much stuff today and actually researched it on my own that I have confused myself more. Please help.
1 Answer
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You don’t have to use your bank for a loan.
You can use any bank.
Try the credit union(s) in your town. Credit unions are well known for having the lowest rates. Mine offers 2.99% – no tricks.
A down payment comes from your own pocket.
A good down payment is 20% down
Call and make an appointment to be approved for a loan.
Once you are approved, never tell a dealership this amount.
Consider it none of his business. Choose a car you like. Try your best to talk the price down, then show them the pre-approval letter when you are ready to sign on the dotted line.
Tell a dealer how much you were approved for, and you have completely lost barganing power. Don’t be afraid to walk away – the dealership will call you the next day with a better offer.
Negotiate, negotiate, negotiate. Find flaws with the car and NEVER fall in love with it