2018 Year-End Car Purchase: Prepare Now; Reap Benefits Later

The following key factors will help you to give a head start to your preparation in purchasing your dream car at the end of the year.

1) Research for Outgoing Models

When you start your groundwork to select the car you wish to buy, search first and foremost for the outgoing model of that car. Check out the car clearance sales. Ideally, when a new model of the car has recently released or is soon to be released, there is a lot of sales pressure to remove the older models from the lot. There are two advantages to purchasing an outgoing model at the end of the year, i.e., the outgoing model is one step lower in features which can later be upgraded and the dealer is desperate to make shelf space for the new car model and thus, will be motivated to sell the car at a profitable price.

2) Negotiate Low-Interest Rates

During the end of the year, the one thing on the minds of the dealers is to close the year with strong sales and cover up for target shortfalls, if any. As your credit score is the deal maker or breaker, make sure you consistently keep a check on your credit score. Pay off any past debts, make timely payments and don’t degrade the credit score in the last one month of the year. Therefore, you will be able to negotiate low-interest rates with the help of a strong credit score that would indicate financial stability and strength.

3) Save Money for Down Payment

Putting down money for your auto loan is an investment. If you wish to comfortably acquire the money for the down payment, start saving for it from today. Minimize your expenses for the coming months and once you receive your salary, save more than usual for the down payment. A good down payment of 20% or more can drastically lower your monthly payments and even help you to secure better interest rates on your auto loan. Hence, think about the long-term effect of your spending and save money till the end of the year to get benefits on the car loan.

4) Maintain your Job

The credit score is an important aspect while measuring your financial strength. However, it is not the only thing that lenders check before saying yes to you. The consistency of your job and your job history make a huge impact on the approval of the auto loan as it displays your ability to repay the auto loan amount. If you are planning to switch jobs in the near future, it is advisable to continue at your current workplace until you purchase the car. Additionally, if you are earning your income in cash, make sure you report your income to obtain a better chance for your auto loan approval.

It is not a novelty that the early bird gets the worm and the same applies to car buying. If you want to make the most of the end of the year car buying deals, you will have to prepare for it today. Take a look at the current market, research your car options as well as auto financing options and be proactive instead of reactive to the car deals. Car buying is a big financial decision and you should make it your best decision by preparing ahead.

:- Posted by Admin on 15th November, 2018