If you are looking to take advantage of a deal or two over the July 4th weekend on a new or used vehicle, these quick but essential tips will help. We have included a handy auto loan comparison tool as well.
Tip #1: Shop From Home Ahead of Time
If you are looking for a pre-owned car or truck, we have a tool that shows dealer inventory in your area before you contact them. Those search tools will allow you to select the type of vehicle and your price range. Likewise, we have a similar search tool for new vehicles.
Before you head to the dealership, take a glance at this helpful guide that covers the terms, phrases, and “lingo” you are most likely to see and hear. If you are not sure about a particular dealer, Cars.com offers this dealership and salespeople review tool.
Tip #2: Always Have a Down Payment
In the long run, a down payment will save you money on financing a new car. We recommend putting at least 20 percent down and 25 percent if you can swing it. Having money down lowers your monthly payment and lessens the amount you are financing.
Sometimes, a higher MSRP is offset by longer loan terms, like 72 or 84 months. However, we don’t recommend going any longer than 60 months if you can help it. While longer loans lower the monthly payment, at the rate vehicles depreciate, it’s better to save for a down payment and take a shorter loan. This allows you to pay the vehicle off faster and lessens your chances of negative equity.
Tip #3: Leasing Versus Buying
Leasing has many benefits, including a lower monthly payment and never being out of the factory warranty. If you want a higher trim level, leasing will often make it more affordable than financing. There is also a fun factor with leasing because you get to drive a new vehicle every two or three years!
However, miles can add up unexpectedly, and it doesn’t take much. A couple of business trips, summer vacations, and extended weekend getaways are all it takes before you risk hitting your yearly threshold for miles. Lease payments are determined partly by the annual mileage allotment; the lower the mileage allotment, the lower the monthly payment.
The “sweet spot” for leasing is driving at or around 800 miles a month. Usually, the “10-5 lease” (to use the dealer lingo) will give you the lowest payment, that being 10,500 miles a year, which equals about 875 miles a month. If you are over that, consider buying instead.
Best Extended Warranty Companies
Get a free quote for any pre-owned vehicle that has run out of factory warranty.
Best Overall Warranty Provider
Endurance
Affordable Monthly Payment
CarShield
Best Warranty Provider for Used Cars
Carchex
Tip #4: Walk Through The Service Department
If you are buying a vehicle from a traditional dealership, chances are you will bring it back for oil changes, tire rotations, and other maintenance work. Ask the sales consultant to show you the service department at some point. Ask them to introduce you to a service advisor and get their business card. This way, you have a person to call if you have questions about maintenance and need to schedule an appointment.
Consider an extended warranty to protect against unforeseen and high repair costs. Based on reputation, price, and coverage, Endurance, CARCHEX, Protect My Car, CarShield, autopom!, and Olive are among the best car warranty companies. This helpful and comprehensive guide goes through each of those providers, listing out coverage levels, average pricing, BBB ratings, and more. To help get the most out of any extended warranty, see these six expert tips from a repair shop owner.
Bonus Tip: Auto Loan Rate Comparision Tool
It’s also recommended to secure your own financing ahead of time. The calculator below will help get you started.
Compare Auto Loan Rates
Compare which options fit your budget, credit score, and term length.
- All
- 24 to 84 months
- 36 to 72 months
- 3 to 84 months
- Up to 84 months
- 48 to 84 months
- 12 to 84 months
- 36 to 84 months
- All
- 500
- 510
- 550
- 575
- 580
- 620
- 680
Refinance Loan
Cred Score
Rate Term
APR*
- Below-average credit scores accepted
- Great interest rates
- Smooth and easy online experience
Used Car Loan
Cred Score
Rate Term
APR*
- Great for customers with limited/no credit
- Offers special military rates
- A+ BBB rating
General Loan
Cred Score
Rate Term
APR*
- Get approved in as little as 60 seconds
- All credit types gladly accepted
- Absolutely no obligation
Refinance Loan
Cred Score
Rate Term
APR*
- Average monthly savings of $150
- Work with personal loan concierge to compare options
- A+ BBB Rating
Refinance Loan
Cred Score
Rate Term
APR*
- Average savings of $111/month
- Secure, fully online platform
- Refinancing available for cars, trucks, or SUVs
Refinance Loan
Cred Score
Rate Term
APR*
- Specializes in auto refinancing
- A+ BBB Rating
- No application fee
Refinance Loan
Cred Score
Rate Term
APR*
- Average monthly savings of $145
- Online application
- Browse loan options found specifically for you
