Buying a new Ford car is one of the most significant investments you will make in your adult life.
It's important that you approach this financial decision with a lot of preparation. You can streamline the process and ensure that you have a productive car buying experience by taking the time to prepare yourself for the purchase.
1. Get Pre-Approved
Drivers typically choose to finance their vehicles rather than pay the full purchase price up-front. Financing gives you the ability to spread the purchase price out over a number of years, which allows you to invest in a more expensive vehicle.
If you are planning to utilize financing to pay for your new car, you should take the time to get pre-approved for a loan. The pre-approval process will reveal how much you are able to borrow. You will also be able to use the pre-approval process to explore how varying the terms of the loan can change your estimated monthly payment.
A pre-approval letter can prevent you from test driving vehicles that are out of your price range.
2. Limit the Loan Term
Dealerships have created a number of financing options for consumers in an effort to meet a wide range of needs. One of the unique ways dealerships are serving their customers is by offering longer terms on auto loans.
If you are able to limit the loan term to as few years as possible, try to work with the dealership to accomplish this goal. Your monthly payments will be a little higher when the loan term is shortened, but you will end up paying a lot less in interest over the life of the loan.
A shorter loan term also ensures that your vehicle will still be in good condition and relatively new if you decide to sell or trade it in at the end of the loan.
3. Identify Your Needs
The sales representatives at your local car dealership know a lot about the vehicles on their lot. You can take advantage of this knowledge to help you locate the right vehicle for your lifestyle.
Instead of focusing on a specific make and model, create a list of your needs instead. The sales representative can use your list to identify all of the vehicles on the lot that meet your parameters. This approach will allow you to look at vehicles that you may not have considered otherwise.