Dealers may lower your monthly payment by stretching the loan to 6 or 7 years, which actually costs you much more in interest over time. Always negotiate the total purchase price , not the monthly payment. 4. The Test Drive & Inspection
Before you fall in love with a car, know what you can actually afford. car buying 101
For a financially conservative approach, put 20% down , finance for no more than 3 years , and keep the monthly payment under 8% of your income. Dealers may lower your monthly payment by stretching
Visit your bank or a credit union first. A pre-approval gives you a baseline interest rate to compare against whatever the dealer offers. put 20% down
Never walk into a dealership without financing already in your pocket.