Friday, December 4, 2015

Money Matters in Buying a Used Car

  • If you're buying a used car, your first step should be to figure out what you can afford. Consider the cash value of the car you're selling. Calculate any additional down payment. Then determine a monthly payment that fits your budget. Experts suggest a maximum of five years for car loans. You can check an auto loan calculator.
  • Determine market values in your region. Consult websites such as the USAA Car Buying Service, Kelley Blue Book and TrueCar.
  • Get an auto insurance quote to help determine the true cost of ownership but note that collision and comprehensive coverage generally costs less for used cars.
  • Look for low loan rates. Financial institutions such as credit unions might offer lower interest rates than a car dealer.
  • Get preapproved. That can help simplify the negotiation process.

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