What is “Savoring” and How Can it Help You Build Wealth?
The price of everything has gone up this year and cars are no exception. Whether you are in the market for a used or new car, you can expect to see higher prices. Slowdowns due to the pandemic and a global chip shortage have made the car market tight. According to the U.S. Bureau of Labor Statistics, its used car index, which tracks used car prices, has risen by 42% from December 2019 to October 2022. Many experts have suggested that car prices could start to drop in early 2023. However, that’s not a guarantee. If you can’t defer your purchase, here are a few tips to keep in mind as you go car shopping:
Pro- tip: Get pre-approved by rate shopping with a few lenders. Then, have the dealership match or beat those rates. Keep in mind that if you are applying for credit, it does affect your credit score! So, make sure you shop around within a 7-day window.
For example, a dealer may charge a higher interest rate than what you qualify for and extend the payment time frame from 60 months (5 years) to 72 months (6 years). By pushing the repayment terms out further, it lowers the payment, but raises the total cost of the car.
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Not all dealers are bad and out to get you. They need to make money just like any other business. However, it is important to be knowledgeable about what you will be paying so that you are in the position to get the best deal for yourself.