The Best Ways to Finance a Car

There are many advantages to buying a new car, but the high price tag can feel a bit overwhelming. It's important to prep yourself before heading off to your nearest dealer. We've put together a list of five tips on how to finance that brand new car you've been drooling over.


Five Tips For Financing Your New Vehicle

  1. Be certain on the type of car you want to buy. If you go to the dealer without knowing what you're looking for, you could end up with a vehicle that may not suit your needs or one that you can't afford in the long run. Think about how you're going to use your vehicle. Is it strictly for commuting? Then a small sedan with great gas mileage may work best for you. Do you need room for a family of six? Then a Dodge Durango would be your best bet. Do you ride the trails on the weekends? Then a Jeep Cherokee is an excellent option.
  2. Create a budget. A good rule of thumb to follow is that your monthly car payment shouldn't exceed 20% of your take home pay. Once you've figured out what that total is, make a list of all your monthly living expenses, including auto insurance, fuel, etc. Add it all up, including your potential car payment. How much money do you have left over? Do you have enough for savings and discretionary spending?
  3. Get pre-approved before you go to the dealer. Once you have your dream vehicle selected and you've estimated the final cost, click HERE to fill out a pre-approval application. This will save you a lot of time up front.
  4. Options for monthly payments. Your dealer will most likely be able to give you several options for monthly payments. You can pay more each month and pay off your vehicle faster; or keep your payments lower for an extended length of time. Be sure you completely understand what a long-term contract entails.
  5. Keep an eye out for sales. Dealers host deals and specials throughout the year to make purchasing a car more affordable. And each year, right before new model year launch, most current model year automobiles will go on sale to reduce inventory. This an excellent time to take of advantage of money saving deals. 

    Looking for a new vehicle? Come on down to Deery of Ames and check out our inventory. Our wide selections of Chrysler, Dodge, Jeep, and Ram vehicles is only matched by our excellent service and commitment to our customers.
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