How To Not Get Screwed When Buying A Car | The 3-Minute Guide

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Hi i’m aaron from broke millennial for the financial diet welcome to the three minute guide brought to you by skillshare there’s a reason the used-car salesman is a common shorthand to refer to something that’s sleazy or pushy so it’s no wonder that buying a new car or a new to you car can seem a little daunting you just don’t want to deal with someone who’s going to

Take you for a ride pun totally intended well i can’t prevent you from walking on to a lot in dealing with a sleazy salesman i can give you some lines of defense so you don’t get screwed when trying to buy a car one get pre-approved for a loan it would be wonderful if everyone could buy the car they need outright in cash but that’s simply not reality if you’re going

To need an auto loan in order to purchase a car then it’s important that you go and get pre-approved for a loan before you even step foot onto the car lot getting pre-approved for a loan doesn’t mean you’ve actually taken out the loan so it’s 100% okay for you to shop around and see what’s lender will give you the best rate it also is not going to do big damage to

Your credit score as long as you shop around within a two-week period you can go to large national banks credit unions a local community bank and even online lenders to see who will pre approve you for an auto loan getting pre-approved and not just pre-qualified can help you do the math to figure out how much you can afford in a monthly payment and how much you can

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Spend total on a car it also is going to give you some negotiating leverage when you’re talking to a dealer to avoid the dealer markup if you haven’t taken the time to get pre-approved and you’re going to ask for financing through the dealership then your dealer can use this to his advantage he could actually increase the loan rate for which you were approved even

Though the loan is coming from a financial institution and not directly from your dealer the dealer could increase the loan by a few percentage points and then pocket the difference in some cases he might even kick some back to the financial institution one way to combat this is to simply know your pre-approval rate and tell the dealer you already have an offer that

Beat says maybe he’ll negotiate with you and lower his offer even though the consumer financial protection bureau did crack down on the discriminatory nature of this practice a few years ago it is still legal number three don’t get sweet-talked into a longer-term loan it might sound like a good deal to have lower monthly payments but lengthening the term of your

Loan means that you’re just going to end up paying more in interest this also could run the risk of you going upside down on the car which means that you owe more than the car is actually worth you also want to make sure to know whether or not there is a prepayment penalty if you the car off early if there is you should go ahead and shop around for another offer

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For thoroughly research the history of a used car be sure you look up the history of any used car you’re interested in buying you want to know the accident history if it’s ever been through a flood or a hurricane if it’s been salvaged and of course that it was actually obtained legally you should also get a used car inspected by a certified mechanic before you buy

You can check the cars title with your state’s dmv using the vehicle identification number or vin you can also use auto check to get a history of the car for $25 or carfax which charges 40 you can also use sites like auto trader kelly blue book edmonds and car max in order to compare models of used cars v double check for any add-ons to your contract i know it’s

A lot of paperwork but be sure to read through the full contract before you sign to make sure that the dealer didn’t add in anything extra to bump up the price that could be an extended warranty deal or small pieces of insurance that you didn’t want through your dealer or plan to shop for elsewhere car shopping can be stressful and what better way to relax than

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More about leave your topic idea in the comments section below i’m erin from broke millennial for the financial diet and don’t forget to be here next thursday for a new 3-minute guide

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How To Not Get Screwed When Buying A Car | The 3-Minute Guide By The Financial Diet

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