New Car Financing: Most Have to Live with it, Few Without.

Unless your are independently wealthy, a trust fund baby or unusually frugal, chances of you needing to finance your new car is probably a given. So, now that we know that you are going to have to rely on a lending institution to put that new GMC truck in your driveway, to out-do Jim down the street who just got one of course, you’ll want the whole financing process to be as easy as possible. 

There’s no doubt that financing can be one of the most stressful and difficult parts of any new car purchase. Here are some tips you can use to find the financing for your perfect set of wheels.

“What can I do to lower the price of my car?” That is a question that many people ask. What many people may not realize, initially, is that financing plays a huge role in the final cost of your new car. The amount of money that was financed, the length of the loan, and the interest rate all impact the final cost of your new car.

All of these things might overwhelm someone who is new to car buying, and it is certainly difficult for even those who have purchased several cars before. Using these tips though, can help anyone get the best possible deal next time they are in the market.

  • Make a Larger Down Payment. Large down payments can help immensely because the more money you put down at the time of signing means that the lender is going to be providing less. This results in lower financing costs. This also shows the lender that you are a fairly solvent or thrifty individual, and therefore a “safe” bet for a car loan
  • Identify Your Needs. The potential buyer needs to understand exactly what they need in a car as opposed to what they want. While it is always nice to be able to get what you want, you only really need to get what you need. The wants are extras that can (and will) drive up the price of the car and therefore increase the amount of money that you need to finance.
  • Know Your Price Range. Knowing your price range prior to new car shopping is going to help keep you from impulse buying something you later find you cannot afford. Impulse buying is one of the leading causes to higher financing costs.
  • Do Your Homework. Check April issues of such magazines as Consumer Reports and Car and Driver. These popular publications issue reports about the new cars coming out that year, examining various categories such as repair rates and issues, depreciation rates, and so on. This information is all needed to be able to make sure you get the best value for the money that you are going to spend. Such information also plays a factor in how much money the lenders are willing to give you at financing time.


If you have any questions about financing a new car or new truck, these guys can help.