Better Your Choice With Important Car Buying Tips

Car buying tips are helpful not only for those who are making their first purchase but even the experienced buyers can take a cue or two from these tips. Expert assistance is required on two steps.

• Buying a car
• Selecting proper loans

Car Buying Tips

. Old Car Vs New Car

While planning to buy a car, there is always confusion about whether to go for the latest model or the year old one. Check out the price of the older one and then shop around for the best deal on the new one. Select the newer one, if there is not much difference between the two. In simple words, there are three types of buyers.

Short-term buyers: For a short-term buyer or someone who intends to resale her/his car within three years, the latest model will do well. Because though you might save a couple of thousand dollars or so on the older model but after three years you will lose more money than you saved on that model.

Mid-term buyers: If you are a long-term buyer and intend to sell the car after five years or so, pay attention to the difference between the two models vis-à-vis their style features, look etc. If there is not much difference then go for older one because after five odd years, the price will depend on the number of miles being driven.

Once-in-a-lifetime buyers: Those who are looking for once in a lifetime purchase, they should know the history of their favorite brand well. One needs to look at several factors in such cases.

• The added features
• Public response to previous models
• Reputation of the company
• Availability of the spare parts
• Proximity of the central dealership
• After sales services

Alternatively, if it is the older model that will suit you best, locate a dealer who will search for your model through her/his central inventory.

. Interest Rates

Another tip can change the way you look at interest rate schemes. "Zero percent financing" is largely applicable to the clearance stock. If you are a short-term buyer and are overlooking rebates worth over $3000-4000 for low interest rates then you are making a big mistake. Because after three odd years the interest you saved would be less than the rebate, you ignored.

. The Time

The right time to buy a new car of previous year model is when the discounts on older model are higher than the newer model and the selection is still good. Like from July to October when dealers are in a hurry to sell their inventory and make way for the newer models. The latest models can be bought during Christmas. As the sales are low, you can force the dealer to come to your terms. Then you can also benefit if you are placing an order for your car. Ordered vehicles are sold for less than the ones in the lot. Lastly, never buy in a hurry and never wait for the expiration of the old car before looking for new.

The above car buying tips will definitely make you look at car shopping in a new light.

Tips On car loans

If it is a used car you plan to buy, don't go for a much older model. They'll not only chew your savings on maintenance but even loans are hard to get for them. Keep a copy of your credit score handy. This way you can bargain on interest rates. Do not go for trade in of your old vehicle if you still owe money on it. In case your dealer does not pay the due amount, the loan and the attached late fee will have to be paid by you.

Short-term emergency loans like car title loans have triple digit annual interest rates, require repayment within a month and the loan amount is much less than the value of the car. They also keep the paid-off vehicle as collateral so avail them only in dire need.

If you need a car for short term and do not want to purchase it then car lease can work for you. It means that you undertake to use a car for two or more years by paying fixed monthly installments. During this time you will keep insurance, pay taxes, license fees etc. After the lease period ends you may return the vehicle with normal wear and tear or you may have the leasing company extend the lease or you may even purchase the vehicle.