Since most of us, myself included, don’t have a safe with a big stack of cash in it we need to finance our auto purchases. Most people go with dealership financing but there is another option. Private party auto loans are often a more practical solution depending on your situation. In General here are some of the major differences between the two types of loans.

The Loan Term

Private Lenders typically offer loans between 24 and 48 months. That is much shorter than the typical 72 month dealership auto loan term.

This means that given the same amount of money you will pay higher monthly payments but overall only a fraction of the interest with a typical private party auto loan.

Interest Rates

Despite typically costing less in interest over the course of the loan, private party lenders tend to offer loans with slightly higher APRs. This is not always the case though, depending on your credit score and how much shopping around you do for loans you can often find a loan with a comparable rate. So be sure to shop around!

Pre-Approval

At a dealership sales people will often get you interested in a particular vehicle assuring you that the financing will be no problem. Sometimes it is. With private party auto loans the financing is setup beforehand so you can go into the dealership with your money in hand which puts you in an excellent negotiating position.

Another advantage to this setup is that buyers with less than perfect credit can find out exactly how much car they can afford before they decide on one. It sucks to find the perfect vehicle and be told after doing all the paperwork that they cannot actually afford it.

Freedom To Buy From Private Sellers

The difference between buying the same car at a dealership or from a private seller is typically thousands of dollars. Many people think they can’t go the private party route because they cannot finance their purchase, but private party auto loans do just that.

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Some tips for buying a new car without getting carried away by the excitement. It is great fun going to a showroom and getting into the drivers seat of some of those shiny new models. The trouble is that it is normally the salesman who is in the drivers seat when it comes to negotiating a deal. It pays to be prepared.

You probably did some research, in magazines or online, before going out to look at the real thing. You will have made a realistic assessment of what sort of car you really need and what you can afford. You head out boldly with your goal in mind. But then you see the gleaming paintwork and smell the leather and …!

That’s where they’ve got you. The dealer is your friend and he doesn’t want you to have to settle for second best. He can see you glancing towards what you really want. It’s his job to convince you that with the special deal he’s going to cut you, you can afford it. As long as you buy today, that is.

If he can’t bump you up a model, he can certainly get some options and accessories onto the contract. Add in all the extra services to make car ownership trouble free and you’d be mad not to buy. When you see how little you’ll be paying on the amazing finance deal he offers, you’ll almost feel as though you stole the car.

You drive away feeling great, and don’t even realise that you have been led down a well worn path. The dealer has a step by step plan, and each step is another opportunity to boost his profit on the deal.

The dealer has a playbook of pressure tactics and psychological tricks that are designed to get you to buy now and at the maximum profit for him. They range from subtle, to not so subtle, to downright dirty. And he’s an expert in deploying them.

The best tip for buying your new car is, don’t, until you are properly prepared. It’s too big a purchase to make a mistake on. Know what you want and your monthly budget and stick to it.

It is worth working on your mindset before you go to the dealer. Always be aware that the money and the buying decision are yours. The salesman will try to convince you that you only have one chance to get this deal. It’s not true. There is always another one.

If you feel under pressure, tell the dealer that you are going to buy, but not necessarily now and from him. Take back control and then ask for a better deal. There may be unadvertised offers. I got a salesman to check on this and saved $700!

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Do you have a car buying strategy? Why would I ask that question? Because if you dont you could be getting taken for a ride. You can bet that the auto dealer will have his strategy planned, down to the last dot and comma. From the moment he sees you, he knows the path he wants to lead you down.

You had better have your own strategy in place. The agent’s job is to meet his sales quota. He can make it easier for himself by maximizing his profit on every deal. Perhaps by guiding you towards a more expensive car than you had in mind. Adding on a few extras.

The dealers offers on finance and servicing may sound attractive but they could work out better for him than for you. That is why you need to know what alternatives are available before you go to buy.

The next part of your car buying strategy is to know when to look. New models are released between August and November. Just before then is your chance to get the current model at a discount. The dealer needs to get old stock off his hands.

At the end of the month, the pressure is on to hit that sales quota. They need you to buy today rather than next week. Look as though you are about to leave and they just might be able to work out a better deal.

Weekdays are better for getting a good deal. With fewer buyers around, the agent needs to pull out the stops to make the deal attractive. If you are the only one in the showroom, he doesn’t want to see you walk away.

It’s a big commitment to buy a car. You don’t have to rush into it. But it’s exciting too and it’s easy to be swept along by emotion. The salesman knows that and will try every trick in the book to play on it. He try to convince you that this deal is only available today. It’s not true.

If you are feeling pressurized or there are aspects of the deal you aren’t sure of, you can always leave. It is easier if you go in with the mindset that you can do that. There will be other times and other places to get the same or a better deal.

Having your own car buying strategy can put you on an even footing with the salesman. In tough economic times, you need to make sure you are getting the best possible value on a car that suits your requirements.

Technorati Tags: auto buying, auto buying guide, auto buying tips, auto leasing, Automotive, Autos, Car Buying, Car Buying Guide, car buying strategy, car buying tips, car leasing, family, Shopping, vehicle leasing

Do you have a car buying strategy? Why would I ask that question? Because if you dont you could be getting taken for a ride. You can bet that the auto dealer will have his strategy planned, down to the last dot and comma. From the moment he sees you, he knows the path he wants to lead you down.

You’ve got to have your own strategy in mind. The salesman’s job is to hit his sales target. The more he can make on each deal, the better. Maybe by bumping you up to a more expensive model or some optional extras.

Finance through the dealer, service contracts, GAP insurance etc may be a better deal for him than they are for you. You need to plan ahead and know what alternatives are available before you go to the car lot. Know what model and what features you want.

The first step is to know what you want and the next one is knowing when to go and get it. If you really want the latest model, August to November is the time to go. If that’s not important, just before this time, the dealer may have old stock on hand that he needs to get rid of. That could work in your favour.

The end of the month is the deadline for sales targets. The pressure is on them to sell, not on you to buy. Look like you’re going to leave and they just might be able to save you an extra fe dollars to get the deal.

On weekdays, there are fewer shoppers around. The dealer will be more anxious to make the sale. If you are the only potential customer, he doesn’t want you to walk out. You can always do that if you don’t like the offer.

Buying a car is a major financial commitment. You dont have to do it today. It is easy to be seduced by the shiny paint job and that new car smell. And the dealer will have used every trick in his playbook to take advantage of that. He will want you to believe that if you want this car, its got to be now. Thats not true.

If you are not sure about the car or any aspect of the deal, or you are feeling under pressure, walk away. It is much easier to do that if you have prepared in advance. You will be able to get the same model, at an equal or better price, next week or the week after.

Have your car buying strategy prepared and you can take away the salesmans home field advantage. Every penny counts these days. Get the car that is right for and for the best possible value.

Technorati Tags: auto buying, auto buying guide, auto buying tips, auto leasing, Automotive, Autos, Car Buying, Car Buying Guide, car buying strategy, car buying tips, car leasing, family, Shopping, vehicle leasing

If you are thinking about buying a new vehicle here are 5 of the most compelling reasons to buy a used car rather than a new car.

1. Used Cars Cost Less

Since the point of a car is to get your from here to there, there is no reason to pay more for something that fundamentally will do the same thing. If you are on a budget look at what you need not what you want and you will realize that a new car is a mostly a status symbol.

2. Used Cars Hold Their Value Better

A car, used or new, will depreciate the older it is and the more it is used. However the minute you drive a new car of the lot it loses a significant portion of its value. This means if you go to sell your new car you will have already lost thousands of dollars. On the other hand, if you buy used, when you go to sell your car you will be able to get most of what you paid for it back.

3. Used Cars Are Greener

It takes a lot of resources and energy to produce a new vehicle. Buying used does not cause any additional harm to the environment. Remember that next time someone smugly tells you they are looking at the new Prius.

4. Lower Insurance Premiums for Used Car Owners

Since used cars are generally far less expensive than new cars their monthly insurance premiums are far less as well. Saving on insurance costs each month can really add up. Over the course of the year if you saved $50 dollars a month on insurance you would save $600 dollars.

5. Availability Of OEM Parts

After about 5 years most of the contracts car-makers have with part manufacturers what prevent them from selling the same parts they make for the car companies without the company label at deep discounts. That means that if you have a used car older than 5 years chances are if you need to replace a part it will be available form an OEM manufacturer for significant less than if you got it from a dealer.

Technorati Tags: Automotive, car advice, car buying advice, car buying tips, Cars, pre-owned cars, trucks, used car auctions, used car tips, used cars, Vehicles

Just why was the horse trader always regarded with deep suspicion in the past. There was a good reason.

Well, this is the guy who would buy a lame horse and know how to fix it …. temporarily. Then, he would sell it as a sound animal and take the money and disappear. The horse, poor thing, would soon become lame again and the buyer would be stuck with an unusable animal.

The generic inheritor of the horse trader reputation is, of course, the Car Dealer.

Car Dealers know how to trick you in so many ways that it will make your head swim and your eyes water. You may even, if you are so inclined, swear a lot at them. But, that will probably be much, much too late. You will already have purchased the car for way too much money.

Now, not every dealer is this slippery and willing to do anything (almost) for a buck. But, those kind are out there in great numbers. How can you protect yourself from these wily, unscrupulous, into-your-wallet Car Dealers?

How to protect yourself? It is easy. Know the Tricks Yourself.

So, what are these underhanded, unknown tricks? Well, there are some 14 of them which might be said to be majors. They are listed here in plain words to help you with your automobile purchasing efforts.

1. Why “hiding your trade” until negotiating your new car is flat-out wrong – How the dealer can still pump the profits right back into your deal (and with a vengeance). He will be glad to get back at you, secretly.

2. How can you get the best financing rate that you qualify for? Dealerships usually up your true financing rate by 2-3 points. Find out how to get them working for you not against you.

3. The easiest way to get the most for your trade from a dealership – This alone can save $2000 or more when you’re dealing with a trade-in.

4. How the “no hassle pricing” system works, and how it sets you up to pay even more money – The price of the new car is only a tiny piece of the puzzle. See the other angles the dealer works in to re-coup the lost profits . . . and then some.

5. Save up to 56% on your new car accessories – This simple idea can add up to fast savings, while still getting manufacturer-quality accessories.

6. The truth about leases – See exactly how leases are calculated, and how their fancy terminology allows for even more profits to be packed in right under your nose.

7. If you like those pre-paid service coupons. You will think again after reading this . . . What is actually going on with pre-paid maintenance plans.

8. The persuasion tactics they use to push you onto colors, features, and sometimes even a whole different car that you normally wouldn’t want. Learn how to spot and overcome their sneaky tactics to push you to things you aren’t interested in.

9. How dealers stack the numbers to hide the true deal, leaving you comparing apples to oranges as you comparison shop. Discover how to see which dealer is really making you the best offer.

10. The absolute best day of the month to buy a car – When you know this you can save you thousands… even putting you well below the invoice.

11. How the “end of model year sale” is burying you in your new purchase – buyer beware!

12. “Tires For Life,” dealer-only “Lifetime Warranties,” and other common ploys. What’s really in it for them? Find out here.

13. What a “documentation fee” (doc fee)is actually? And, what YOU can do about it. Don’t take a dealer at his word – check this out, first.

14. What is meant when they say they’ll “pay off your trade” . . . Watch out for this sneaky tactic. It can create a cycle of becoming “upside down” in your car purchases for years to come.

You can be in Control of your Car Purchase. When you know what the dealer is about to do, you can anticipate it. Make your counter move or maybe just say NO.

For example, ” knowing how to get the best deal on accessories can save you a bundle ( #5 above). Plus all the 13 others

Technorati Tags: 14 car buying tips, auto buying, automobile buying, Automotive, Buy Car, buy new car, car buying advice, car buying negotiating tips, car buying secrets, car buying tips, Car Shopping