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    Info Graphic Buying A Car

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    beardent

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    Info Graphic Buying A Car

    Uploaded by

    beardent
    5 views2 pages

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    Info Graphic Buying a Car

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views2 pages

    Info Graphic Buying A Car

    Uploaded by

    beardent

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    STEP 1 DETERMINE YOUR TRANSPORTATION NEEDS

    Safety? Mileage? Additional Space? Ease-of-Use?

    STEP 2 CALCULATE HOW MUCH YOU CAN AFFORD


    Excess Monthly Cash Flow Available for Vehicle Payment & Maintenance $400
    Less Gas $50
    Less Insurance $75
    Less Maintenance $20 Consider only
    Less Repairs $25 additional income
    that is certain.
    Amount Remaining for Automobile Loan Payment $230
    Plus Income Earned from Vehicle Ownership $0
    MAXIMUM AMOUNT THAT CAN BE ALLOCATED FOR PAYMENT $230

    STEP 3 SHOPPING FOR AN AUTOMOBILE LOAN


    Before you contact lenders, review your credit report for errors.
    Errors can lead to higher interest or disqualify you from
    getting a loan.
    Every credit report run shows up on your credit
    report. Dealers will know where you’ve been.
    Limit loan shopping to 2 weeks to minimize
    impact of multiple credit inquiries.
    Variables That Will Determine Loan Amount
    The key variable to negotiate
    in an auto loan is the lowest
    interest rate possible.

    The lower the interest rate,


    Maximum The loan term or The interest Loan the more you can borrow.
    payment. repayment period. rate. amount.
    The higher the interest rate,
    the less you can borrow.
    How much car can you get for $230 per month?
    The longer the loan term,
    Use a calculator or the present value of an annuity formula: the more you can borrow.

    PVAi =
    PMT
    i
    1
    1
    )1+i ) n Loan Amount =
    $230
    0.00417 ( 1 ( 1
    ) 1+ 0.00417) 48 (( = $9,986.49
    If you get a 4-year, 5% loan, you can purchase a car that costs about $10,000.

    STEP 4 RESEARCH STEP 5 OBTAIN AN


    SPECIFIC VEHICLE MODELS ESTIMATE FOR INSURANCE

    Consider fuel efficiency and likely repair Once you’ve identified specific vehicles
    issues. (year made, manufacturer, and model),
    contact your insurance company to find
    Used car? Research online at: out what it will cost to insure your
    www.edmunds.com potential new ride.
    Your credit score can also impact the cost
    www.consumerreports.org of your insurance, with higher credit
    J.D.Power and other sites scores resulting in lower insurance costs.

    STEP 6 NEGOTIATE A PURCHASE PRICE Sold!


    Make your search area as large as possible to ensure you find your best options.

    Explore auto dealerships, local newspapers, and other online services.

    Do your homework.

    Keep your options open.

    Choose the best alternative that meets your budget!

    Negotiate! The seller needs to sell the car more than you need to buy it.

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