Archive for Car Purchase
Car Loan Mistakes #2
Posted by: | CommentsNever attempt to make a major purchase (auto, home or home refinance) without knowing your credit score. Never let a salesperson know more about your credit than you do!
While all credit reporting agencies (Equifax, Experian and TransUnion) have their own unique credit scoring system, the one you want is the one most lenders use: FICO. You can obtain your score for $15.95 at http://myfico.com, so you know exactly where you stand, but it also includes use of their Credit Simulator for 30 days. That gives you the opportunity to look at each item in your credit report and see what your options are. For example, with a Sears Card you’ve had a number of years, you can determine if your credit score would go up or down if you pay off the card or close the account. You can go through each item on your credit report and get your credit score in the best possible shape. This allows you to be in charge of the negotiations.
Lastly, the best question to ask the salesperson to show you’re a saavy shopper is: “What is the minimum acceptable FICO score I need for your best rate?”
Give it a try and let me know how you do.
Car Loan Mistakes #1
Posted by: | CommentsWe all buy cars throughout our lives, so I thought this topic could use some attention.
The biggest mistake we make in buying a car is answering the question: “How much can you afford to pay each month for your car?” Sure you need to know how much you can afford, but it’s nobody else’s business! And when you consider how much you can afford, don’t forget insurance and cost of maintenance — those are part of the overall costs as well.
MAP strategy: Hold your cards very close to your chest. When the salesperson asks the question, just say, “I don’t intend to buy today; I’m just looking around,” or “I’m not in any hurry, I’m just thinking about making a change.” Then YOU ask the questions: “If I put 20% down on this, and wanted payments for 48 months, what would my payment be?” That kind of posture (where you are in charge of the negotiations) changes everything and puts you in control.
Give it a try and let me know how you do.
