Advice on buying a new car
Am plannin 2 buy a new car soon.I was told that the dealers themselves arrange for the finance (bank loans,ins etc).Just wanted 2 know-what extra value for my money should i be on the lookout for when i am made an offer by a dealer?are there any hidden costs i should be on the lookout for?
any recommendations on dealers for nissan/toyota cars???
For some reason over here, vehicle loans are done on a simple interest basis. Basically, you want to borrow X over 5 years, so they calculate the total interest payable over that period and then add it (and fees) to the loan amount. Suddenly a 4% interest rate is nearer an 8% APR (excuse the rough numbers). The title of the car is also held by the bank, making selling it overly complicated!
If you want a set sum for a set period, then this is a good way to go.
However, if you want to be able the pay it off quickly, without any of the restrictions, then a personal loan from the bank may work out to be cheaper overall! If you increase your payments, you end up paying less interest, and accordingly less overall as the interest is calculated as compound interest.
Clearly, it will all come down to your personal situation, but it is worth considering the benefits of each.
Also, dealers will also occasionally provide discounted vehicle loan rates for new models - they pay the difference on the bank's standard rate to give you a cheaper rate in order to get the cars out on the roads and hopefully generate more interest. You'll normally see these offers in the papers.
Finally, some banks do run loyalty packages, such as HSBC status. I believe they charge you a monthly fee for the privilege, but provide discounts on loan rates - might also be worth looking into, as the fee might translate into an overall saving if you are buying a mid- to high-priced car...
from what i gathered when i bought my new car was that most of the dealers here arent really that helpful ! The bank agents are even worst !! i was told at the car dealer that i had to pay X amount at a 3.99% interest rate over 5 yrs, but in actually fact when i went to sign the contract it was like at 4.5% + 1200 management fee ! just check and make sure before u sign anything !! they are abit not upfront on somethings.... i did most of the run around and had to pressure the dealer for the delivery of the car. :( haha anyway all was good experience and fun got a good laugh at the end !!
1.you'll find banks reps in most dealers showroom. dealers do not finance cars unless you have an inside connection. search and then pick the best deal.
2.before you buy check about dealer's after sales facilities and service. check other posts about experiences witb car dealers
3.In resale value toyota and nissan are the best.
this is right time to buy a car. there are lot os offers from HONDA and Nissan. just check with the company they will give in detail . there is monopoly here so there wont be much of bargain between the showrooms. go ahead and get your new car or 4x4. nissan sunny ,maxima and honda accord have good offers now -check them out