Important Facts You Must Know When Buying a Car

The first part of the series discussed the advantages and disadvantages of low vs. high residual payments, and how can you check whether you get good value for your money. When buying a car, it is very important to be vigilant so that you will not fall as prey for the salesperson’s tricks and scams.

Pay only as much as your budget allows- do a thorough research and you will definitely find a car that will fit your personal needs and available budget.  

• If you want to buy the car at the end of the term, then you should opt for a high residual. But do this only if you are truly sure that you will buy a car. This is advisable if you plan to buy a car through leasing.
• If you have already checked the entire market, and still not found a deal that is advantageous, perhaps it is time to change your mind. There are several import dealerships that can bring you on very good price used cars (such as the cars from Japan).
  

• When you plan to buy a car with the help of a loan, make sure that you can offer at least 15%, 20% or even up to 50% upfront payment. This immediately means that you will get low monthly payments, a low APR and of course a much shorter term. It is always much better to buy a car offering “own force” as well, than paying the high interest rates for 5 or even more years.