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Buying A New Car

Buying a new car is one of the biggest credit purchases a person makes, next to buying a home.

Yahoo! Autos
When you're in the market for a new auto, it makes sense to do some research before you ever go to the car dealerships.  Researching your options can help you can find the best deal on the vehicle you want, at terms that you can afford.

When searching for a new car, start off by considering what makes and models you are interested in. You also need to be realistic about what price range you can afford.  There is no since in searching for a car that you can't afford to buy. Once you have the basics in mind, you'll need to compare cars and prices from multiple local dealerships.

For a quick and easy comparison of the dealerships, use the free price quotes at Yahoo! Autos. You can price quotes from multiple local dealerships without even stepping foot on a car lot.  You'll also find specific vehicle information, comparisons, and consumer ratings, as well as information to help you negotiate your best deal. Edmunds also has information on rebates and incentives, financing, insurance, resale values, in addition to calculators to help you estimate payments and determine to true cost to own the vehicle that you have in mind.

Financing Your New Car
If you will be financing your new vehicle, you'll also need to compare financing to find the best terms and rates.  Contact local lenders directly, and then compare the financing they offer you with the financing the dealership offers. When comparing financing, don't only focus on the monthly payment.  You also want to consider the interest rate and the length of the loan.  

Some dealerships may offer very low financing rates for specific cars or models that sound like awesome deals on the radio or TV. You need to realize that certain conditions usually apply to these offers. Most of the time, you may not be able to negotiate on the asking price of these vehicles. You may also be required to make a large down payment to qualify for the financing.

If you're interested in one of these special deals, be sure the research if it will best suit your circumstances. You might find that it’s sometimes more affordable to pay higher financing charges on a car that is lower in price or buying a new car that requires a smaller down payment.

Before you drive off the lot, be sure to have a copy of the contract that both you and the dealer have signed and be sure that all blanks are filled in. The dealership may also push you to buy credit insurance, so that your loan would be paid off should you become disabled or die. If credit insurance is an option, check first to see whether any of your other insurance policies would cover you. Usually, credit insurance through auto financing is an expense that you'll never recoup. If the dealership requires credit insurance in order to finance you, it must be included in the cost of the credit when buying a new car.

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