Tips for Financing and Buying a Car

Unless you are sitting on a savings account large enough to pay for your new or used car outright, you're going to be getting involved in the world of financing. Either dealer-provided financing, or preapproval from a lender of your choosing. Any way you want to slice it, getting preapproved will save you both time and money over dealer financing. Here are the simple step-by-step methods in the process.

1. Know thy credit score: You should check your own credit before you have any bank or lender check it for you. The odds are that you will be able to find some issues there, either accidental or deliberately yours, that you can take care of quickly and maximize your chances of getting a great loan preapproval. See our information on maximizing your pre-purchase credit for more information.
2. Fill out the simple form on this site: And in no time, you will receive quotes from local and national lenders that are interested in helping you finance your vehicle. You can compare loan terms, including length of time and interest rate, and select the loan offering that is best for you.
3. Once you know how much you can spend...: Go car shopping - NOT AT A DEALERSHIP. You should spend plenty of time researching the car(s) you are interested in purchasing online before you go anywhere near a dealership and their professionally-trained salespersons. Use sites like Edmunds.com, KBB.com or ConsumerReports.org to research the pros and cons of your vehicle, learn what optional features are available and how much they will cost. Read the posts of other people who have owned the car(s) you're interested in. Once you've decided on a vehicle, you can get a solid price and know what you should be paying for it and what you should haggle for at the dealership.
4. Review the dealership you are interested in: Car dealerships all across Maryland are typically very different from each other. Some are into high-pressure sales tactics, some are much more laid back. Some have "bottom line" pricing and will not negotiate their prices, others will let you walk away with a car at cost if you play your cards right. Talk to friends and family members about the different dealerships they've been to, and try Googling a dealership to see what information comes up about them, you may be surprised at the number of people who have posted compliments or complaints.
5. Visit your dealership of choice: Once you've researched and chosen a dealership, you should be fine with going in there, knowing exactly what car you want, what features you want, what color you want, and how much you are willing to pay for it. Be confident when dealing with the salesperson, but not snotty, you have the advantage since you've been pre-approved and you've researched everything about your car. If you can strike a deal that satisfies you for the car you want, shake hands and drive off happy. If you can't agree on price or features, then simply shake their hand, thank them for their time, and head to the next dealership on your list. If you do end up going to another dealership, make sure you tell the salesperson early on that you were at another dealership and you left there because they couldn't meet your needs. That will put a little fire under their feet to accommodate you.