finances

5 Reasons To Shop Around For Car Financing

Your monthly car payment consists of both the principal on the loan, and the interest paid to a lender. While you may have little control over how much you pay for the car, you do have control over your interest rate. Let’s look a little closer at the best reasons to shop around for a car loan and how to get a better deal on your vehicle.

Look for the Best Rate

Talking to a local lender may make it easier to get the best rate on a loan. Those with bad credit may get better terms from an online lender compared to at a dealership. Coming to a dealer with a loan in hand may also offer you more leverage during negotiations.

Get Leverage Over the Dealership

You don’t have to accept the loan offer you got from a credit union or online bad credit lender. However, it does guarantee you can get the car you want, even if the dealer wants to play hardball. In most cases, you have 30 days to accept financing terms offered by an outside lender.

Know Your Budget Ahead of Time

If a credit union offers you $10,000 for a car, it should be a sign that this is what you can afford to spend on a car. In many cases, car dealers will try to sell you a car based on the affordability of the monthly payment, which rarely reflects the affordability of the car itself.

Check Your Credit Ahead of Time

Your credit score will play a major role in the loan terms that you may be offered. Applying for a loan before going to the dealership gives you an excuse to check your credit ahead of time. Doing this reduces the odds that a dealer tries to tell you that your credit is bad because you will know whether this is true or not.

The Lender May Check the Condition of the Car

A lender may ask for a vehicle history report prior to making the loan. This may help you find out if it has been involved in any car accidents or has other damage. Ultimately, this may also help you make a better decision about your next vehicle purchase.

Shopping around for a car loan can provides a variety of benefits. In addition to getting a lower interest rate, it can also help you determine how much you can afford prior to going to a dealer. This may help you get a good deal regardless of the tactics a salesperson may try to use.

5 Most Expensive Cars To Insure

Buying a car may be one of the most expensive purchases to make in a life time, second only to buying a home. Before buying a car, it is important to do all the homework to ascertain all aspects of the vehicle you are buying. Some of the elements to look out for include availability of spare parts in case of vehicle mechanical failure, depreciation, and maintenance costs. In addition to these, you need to get a good insurance policy to cover the car in the event of an accident or vehicle mechanical failure. The following are some of the most expensive cars to insure:

Dodge GT Viper

5 Most Expensive Cars To Insure

This is a speedy car with a V-10 engine that can hit 60 mph in just three seconds. The car costs about $4,048 to insure every year. The high cost is partly caused by the fact that it is preferred by people who want move very fast. This car is said to cost over three times the cost of insuring a Honda Odyssey. Other reasons that make them expensive to insure is their vulnerability to thieves as well as the high costs to repair.

Mercedes SL65 AMG

This is among the three top most expensive cars to insure. Its annual insurance cost amounts to $3,797. Generally, cars that are cheap to repair in case of vehicle mechanical failure and have fewer claims filed by the owners cost less to insure.

Mercedes S600 BI-T

The Mercedes S600 BI-T costs $3,539 every year to insure. The insurance rates however differ from state to state. This is because each region presents different sets of challenges including terrain and climatic conditions.

Mercedes S63 AMG 4Matic

This is the fourth most expensive car to insure with its insurance premiums standing at $3,513 every year. The car has an AMG 4.0L V8 biturbo engine which produces a lot of power and is able to reach 60 mph in just 3.4 seconds.

Porsche Panamera S Executive

5 Most Expensive Cars To Insure

This is one among the most expensive Porsche models and one of the most expensive cars to insure. It costs $3,484 every year to insure. To save on insurance costs, it is advisable to get at least three quotes from different insurance service providers.

Insurance is one of the elements that stretches its costs above then original buying price. The best way to approach it is to compare the different quotations from different providers as that you get the best deal.

Sources

http://www.marketwatch.com/story/10-most-expensive-cars-to-insure-2016-02-25

https://www.daveabels.com/mechanical-failures.html

https://gearheads.org/5-most-expensive-cars-to-insure/