16 Things to Consider When Buying a New Car

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10. Avoid Shopping by Car Payment Alone

Another tactic by auto dealerships is to make an auto purchase more attractive by reducing the monthly payment through means other than a reduction in interest rate. No longer are auto dealers restricted by offering only a 60 month payment plan. It is not uncommon for a car note to last six or more years now in order to reduce the monthly payment. Although the lower monthly payment may be attractive, by extending the overall length of the car note, one will pay more interest in the vehicle and will likely not see a good return on investment when the note is eventually paid off. Taking the time to understand the pros and cons of the various repayment schemes for auto loans will help ensure shoppers avoid making a poor decision when time to buy their new car.