According to a survey by the Ohio Credit Union League, nearly 15% of consumers plan to buy a car in the next six months, with half purchasing a new car at a dealership. A large majority of those purchases will be financed, either through a financial institution (62%) or through the dealership (21%).
Below are five tips to consider following before buying a car:
- Do Your Homework: Zero in on the type of car you think you'll buy, before you actually start shopping. To help narrow the field, ask important questions like: What size vehicle do you need? What features are essential? How much can you spend?
- Be Willing to Walk Away: If a deal sounds too good to be true, it likely is. Don't be caught in a pressure situation to buy. Always be willing to walk away from a deal that has you asking questions.
- Have Used Cars Checked Out Thoroughly: If you are interested in a used car, have the vehicle checked by a diagnostic mechanic.
- Have your Finances in Order: When you are close to making a purchase, contact at least three possible financing sources to find the best deal - and be sure to START WITH TELHIO! We have great rates and can work with you to get pre-approved so you know what you can afford before you shop.
- Think Long Term: Making a major purchase will likely have a short term impact on your credit. If you are planning on making another major purchase within a year, consider the impact on your ability to garner financing and at what interest rate.
The Financial Five is a monthly consumer column from Ohio's credit unions that provides important financial tips to consumers.
