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that's decked out with all the extras, but if you don't need
or want those extras, they're just adding to the cost. Either
negotiate a deal (perhaps they're just trying to unload it),
or, if time isn't a factor, order and wait for a base model with
any extras you want to come directly from the manufacturer.
UNDERSTAND THE FINANCING
Unless you have a wad of cash, you will likely obtain
financing to pay for your vehicle. It's always best to get
preapproved before you ever step foot on the lot. Being
preapproved can ease the burden of worrying about
whether or not you qualify and for how much. Also, knowing
you're preapproved can give you a negotiating advantage.
When you're at a traditional dealership, watch out for
special offers and rebates. Sometimes these offers
aren't what they seem. Always use an Auto Loan Calculator
to crunch the numbers and figure out the best deal
for your financial situation or seek help from your
financial institution.
Price, interest rate and loan term matter, so stay within your
budget. Watch for add-ons such as GAP insurance, taxes
charged and any fees. Keep in mind that many of these
are optional.
FEES AND OTHER TRANSACTION COSTS
Fees and transaction costs are expenses associated with
buying and/or financing a vehicle. They can range from
administration fees, processing fees, the lemon law fees,
taxes, tag and title fees and any miscellaneous fees. Most of
these fees are rolled into the amount financed.
CREDIT LIFE INSURANCE AND CREDIT
DISABILITY INSURANCE
Credit life insurance and disability insurance are usually
offered to the buyer and are optional. Credit life insurance
pays off all or some of the loan in the case of death, while
credit disability insurance picks up the monthly payments in
the event of an accident or illness when the borrower is no
longer able to meet the payment obligation.
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