Car Purchasing Tips From 9 Year Mortgage

It is inevitable that your long-time family car will eventually seize up and kick the bucket. Or maybe you’re like the many people who like to trade in their car every couple of years to avoid serious maintenance fees; You even may be possibly thinking of investing in another car for your older teens to share so you’re not left stranded at home every night while they rendezvous with friends. Whatever the case, when it comes to buying a “new” car for your families use, you can never be too careful. 9 Year Mortgage poses the question of what do you prefer to buy: New or Used cars? And Why? A second part to such a question is how do you afford it? 9 Year Mortgage has some helps and hints when it comes to such questions, and we’re here to share them with you!

9 Year Mortgage Discusses Which to Buy: New or Used

Buy New, Used or Lease? This is the question! As far as 9 Year Mortgage goes, we would suggest to stay away from leasing a car whenever possible. Leasing a car is practically an extended car rental, where at the end of your designated time period you have to turn the car in or buy it for thousands more than what you have already paid – which is normally higher than what you would have bought it for originally! Here at 9 Year Mortgage we know that many people lease cars, and it may be the best solution for your situation; however we submit that leasing a car may not be the best financial decision to make in the long run, since you will never pay it off and will continually be making payments with no end in sight. With that being said, lets move on to the New or Used decision.

When deciding between purchasing a new or used vehicle you will no doubt be faced with a heckling salesman, too many options, and different opinions between you and a loved one. To make the car buying experience a little easier, 9 Year Mortgage has compiled a list of helpful advice to consider when deciding between new or used, and which car model. Although choosing between different years and models is a tedious task, there is a plethora of advice that actually pertains to both new and used cars:

• Decide What You Want and Research It: Now a days you don’t have to step foot onto a dealership until you’ve narrowed down your list and are ready to test drive a couple cars. Through various websites, like Kelley Blue Book and AutoTrader, you can compare price, gas mileage, seating capacity, customer reviews or even engine sizes between different models. By using these resources, 9 Year Mortgage acknowledges that you may be able to narrow down your choices quite quickly and drastically cut your time spent at dealerships and talking to various over-zealous salesmen.
  
• Determine a Budget and Stay to It: Like any major purchase, you must pre-determine a budget before you buy, and a vehicle is no exception.  Knowing what your budget is will not only allow you to make the smartest financial decision but may also help you in your decision making process. 9 Year Mortgage reminds you that this budget does not just include the price of that car, but what you can afford for a monthly payment, insurance, and monthly gas allowance.
• Talk to the Right Salesman: Have you ever wished that technology was not as commonly used? Well, you’re not the only one! However, when deciding on which car to buy, technology is a lifesaver and money-saver! Did you know that most dealerships now have two types of salespeople? Yep, some in the showroom/car lot and others in the internet department. Now if you are pretty set on the vehicle you want, 9 Year Mortgage believes that you may want to consider talking to the salespeople in the internet department. Try negotiating prices with this portion of the sales team first because they are more likely to give you the best deal since they don’t work on commission, but volume sold.
• Consider a Trade-In: Whether the car you currently have is 12 years old or two years old, you may want to consider trading it in for your new purchase. Once again, try using a website like Kelley Blue Book’s to determine the current value of your car, by doing this you will go into trade-in negotiations with a better idea of what your car is really worth and you’ll be less likely to get ripped off with such knowledge. Either way, you may be able to get at least $1,000 out of your old junker and most definitely more for your newer model; and any money will help you with your future vehicle financing.
  
• Test Drive, Test Drive, Test Drive:9 Year Mortgage can not stress this enough, you MUST take your soon-to-be car for a test drive. And not just a short twenty minute jot to the next town and back. If you want to be certain that this vehicle can handle your every day driving, take as long as you’d like with the car and drive it on every type of road possible: highway, inner-city roads, back roads, rough/under construction roads, twisty and curvy roads as well. Take it to your home, if possible, to determine if it can fit in your garage comfortably or if it can tote your sports or hobby equipment with ease. Some dealers will even allow you to take it overnight! 9 Year Mortgage knows that by taking your time with each test drive that you will not find yourself upset a month down the road (no pun intended) when the purchase is final.
• Negotiate: Did you know that over 50% of cars that are listed for over 30 days have had at least one price drop? Try your bartering skills in order to get the best deal possible. If a new model has been driven a lot or your thinking of buying it used, mention the odometer reading or a cosmetic defect to get a lower price. If you don’t want to worry about negotiating, companies like Costco and  or AAA offer a car-buying service that will do all the haggling for you.
• Don’t Rush Into a Decision: For most, purchasing a car is a rare decision that they must live with for the next ten or so years. Because this is most frequently the case, 9 Year Mortgage encourages you to take your time with any auto purchase. Regardless of what a salesperson may say, you can often find the same car for a similar deal at various car lots, so don’t let their mind games get to you. Take your time, test drive numerous models, and then- with a budget in mind- make your decision when you feel ready.
• Maintain Your “New” Vehicle: If your car comes with any warranty, keep a record with receipts of all and any maintenance or repairs. This will give you the upper hand in case you do need to use the warranty within the time allotment that it covers.

For more specific differences between New and Used:

New

• Don’t Overlook Depreciation: Have you ever heard something like or similar to: “A car loses over $3,000 in value after you buy it and drive it off the car lot?” Well, your not the only one who hears such things, 9 Year Mortgage has too, and to our knowledge, a new car generally depreciates 18% within the first year and some cars will lose even more than that. Within a year or two, your new car could depreciate more than one could have thought; However, different types of cars have a better depreciation rates than others. Before you buy, try doing some research on how much your potential car will be worth a year, five years and ten years down the road.
  
• Try Not to Over-Do Customization: Do you want leather interior with heated seats? Rear-access control for the ventilation system? Tinted windows? A sun roof? How about a spoiler or the near-neon headlights that probably blind oncoming drivers but allow you to see all too well? Oh, and the sports edition or extended cab with scratch-resistant coating are a must too! Right? Well, if that’s what you really must have, then nothing 9 Year Mortgage can say will change your mind, however keep in mind that every special feature or customization comes at a high cost. Try to limit your customizations, if you do, you may save yourself thousands on your car purchase.

Used

• Choose a Warranty Best for You: If you buy a used car, chances are it doesn’t come with the original manufacturers warranty. If you buy your used car from a dealership and not just some random person, it should come with warranty options that can be bought for an additional cost. Make sure you choose the one that best fits your situation: you won’t need a 5-year warranty if you exchange cars every 2 years.
  
• Consider a Certified Pre-Owned Vehicle: A Certified Pre-Owned Vehicle means that it has been fixed and inspected before being sold by a dealership and it usually comes with similar warranties as a new car. This may be a tad more expensive than buying it from your average Joe, but it comes with a bigger peace of mind when it comes to the condition the car.
• Closely Inspect the Car and Investigate Its History: 9 Year Mortgage suggests that you never, ever just take the word from the salesman or seller of a vehicle when it comes to its condition. Make sure you take the car to a trusted mechanic to do a general over-look of the car. If you are pretty set in your decision on a certain used car, it would be a wise idea to spend the $34.99 charge at Carfax.com in order to obtain a car history report using the Vehicle Identification Number. This will tell you any repairs made, flood damage or odometer rollbacks. Also, take a very close look at the outside of the car for any different paint colors or troubles with doors opening- such things may indicate it has been in an accident or needed major repairs.

9 Year Mortgage on How to Finance Your Auto Purchase

Remember when we mentioned that you need to decide how much car you can afford and set a budget? Well determining how you plan on financing your car purchase may help with setting a budget as well. First things first, calculate how much you can afford to pay each month in payments, insurance and gas; this will help figure out how big of a loan to get. Generally, this combined sum should not be more than 20% of your disposable income. 9 Year Mortgage calculates this by taking one-fifth of whats left after paying all your debts and living expense; this will give you the maximum amount you can afford to pay each month for your car.

A second part in the financing process is to give yourself a time frame of when you want to have the car paid off. 9 Year Mortgage reminds you of the ever growing interest on a car loan. The shorter the time frame you give yourself, the more money you will save because of interest. If you give yourself an extended amount of time to pay off a loan, you will eventually pay heaps more in interest. For example: a $20,000 car loan at 5% … If you were to pay it off in 4 years you will pay $460.59 each month and ultimately $2,108 in interest. If you take the same loan and interest rate but spread it over 10 years, you will pay $211.12 each month but $5,456 in interest.

9 Year Mortgage suggests that you keep your auto loan for under five years, with three years being the best and practical option. If you can not pay the monthly amount with a five year loan, 9 Year Mortgage says that the car your interested in is too expensive.

Last, but not least, try to accumulate money from all sorts of pools. Do not rely just on an auto loan if other options are available to you. In most cases, 9 Year Mortgage would not suggest using any of your retirement savings, like a 401K or IRA, to pay for a car; doing so will result in massive penalties and taxes. If you have any taxable investments, we leave it up to you to determine if it will result in a taxable-situation, although you should be cautious if you believe you will need that money within a couple years for something else. Now, many people believe that getting a home equity loan to pay for a car is a good idea. 9 Year Mortgage warns you that most require a 10 year term, and if you pay it off prior to that you will be penalized and inundated with fees, and if you stick to the ten year term you will pay out the nose in interest.

Financing a car may be the hardest part in the car-shopping process, but 9 Year Mortgage encourages you to visit many local banks and credit unions. Remember that credit unions can offer lower-cost loans than a regular bank. Today, you’ll hear on every car dealership radio add that they offer 0% financing, meaning they will not charge you any interest if you decide to finance through the dealership. What they don’t tell you is that it is incredibly hard to qualify for such a deal, and if you do- you will not be able to negotiate the price of the car. Also, with agreeing to dealership financing, you will find many added fees and terms within the contract- so we encourage you to carefully read and understand each term of the contract before signing if you decide this is the best way to finance for you. If you don’t like whats offered in the contract and they won’t change it- do not be afraid to walk away- a better deal will come up.

Concluding with 9 Year Mortgage

Purchasing a car should not just be a spur of the moment decision. The most important factor that goes into such a decision is determining that budget and sticking to it. Research cars that fit into your budget that are reliable and best suited for your needs. Remember to take long test drives with your possible car options and have them inspected if they are used. To find the best deals, 9 Year Mortgage suggests that you try making a deal in the beginning of the week when sales are low or at the end of the month when quotas need to be filled- doing so will make it easier for you to negotiate a price. Another way to save money is to look into buying the older models that are about to be replaced by this years or are being discontinued- many dealerships are eager to get the older inventory off their lots in order to make room for the new and upcoming models. By taking your time and asking the appropriate questions, you could end up with a steal of a deal on your upcoming car.  For more great money saving ideas visit 9 Year Mortgage on Youtube or go directly to the 9 Year Mortgage Money Saving Minute.

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