Paying For A Car When Purchasing It Online
Posted by Ryan Letterman in Uncategorized, tags: automotive, cars, Payment, personal finance, selling a used car, trucks, Uncategorized, used cars, used trucksThere are two methods for paying for any vehicle you purchase, whether in the dealership or with a private seller: cash and financing.
If you have the necessary cash, good for you as this puts you in command. If you can find a very motivated seller and let him know you intend to pay cash for the car, you can very often get it for way less than the asking price.
Just because you pay cash and get a fine deal doesn’t negate your obligation to yourself to thoroughly inspect the car and the seller. You will need to do a test drive, check out the title document and a Carfax or similar history of maintenance report.
Once you are satisfied with all the terms, invite the seller to meet you at your bank at a certain time and date. Tell him to bring along a Bill of Sale and the Original title to be signed over to you. Your job is to present him with a Certified Check drawn on the bank where the meeting takes place.
We are not talking about a $500 car here. If it is $500, you would still meet him at your bank wanting the same documents, but you could hand him $500. You do not want to hand a person several thousand dollars or more in cash.
If the seller looks askance at your plan of giving him a Certified Check, find out why. On the other hand, don’t say anything. Just tell him that is the way you do business with everyone.
If you do meet your seller at the bank, for your own sake, be sure to stand in a spot where you know the bank’s security cameras will tape the transaction.
If you are paying cash at a dealership, get the total amount of the purchase so you can hand them a check in the correct amount. Many car dealers will take your personal check but have their cashier call the bank to check the funds and put a hold on them until the check clears.
Be sure to read over your sales agreement carefully, because they can and do add extras that you are not aware of.
Should you be financing your purchase, you want everything in place before you even start looking for a car. Talk to the bank that is your lender and let them know exactly the vehicle type you are in the market for. They will inform you about the average loan amount on that car letting you know how much of a down payment you will need.
Also inform your lender that you are purchasing the vehicle from a private seller and find out all their rules and regulations for handling such a deal. Many times, they want you to make the down payment to them and they handle the rest of the dealing directly with the seller.
If you are purchasing from a dealer, you still need your financing in place before you shop for a car. This way you are certain of the type of car you can afford and precisely what your rate of interest on the loan will be.
Word to the wise: Salespeople and finance managers at car dealerships strive to increase your interest rate should you finance through them because they earn a commission over their backer’s stated interest rates.
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