Research the car's value before you buy
One of the first and most important things you'll want to do before walking into a dealership is to research what the car you're interested in buying should cost you.
Services like Edmunds, Kelley Blue Book and NADA can all give you an idea of exactly how much a specific make, model and vehicle year should cost. If you're interested in a used vehicle, take a deep dive into every factor that affects a car's value, including mileage and repair history.
By researching in advance what your vehicle's price should be, you can avoid paying more than the car is worth.
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesSet a budget and stick to it
Car dealers typically work by commission, which means they will try to get you to pay as much as possible for a vehicle — and they've got a number of ways to convince you to pay extra. According to the KPA survey above, 28% felt like a salesperson had tried to "trick" them into a deal.
You don't want to get sucked into a trap and spend any more on a car than you want. Instead, decide ahead of time exactly how much you are comfortable spending and do not go over that amount.
Ask for a Truth-in-Lending disclosure
A dealer might try to hide hidden costs in the fine print of a sales agreement. The KPA survey found 30% of Americans spotted hidden fees in the paperwork after agreeing to a price. To make sure this doesn't happen, you can ask for a Truth-in-Lending disclosure.
This disclosure should include details on:
- The vehicle's Annual Percentage Rate (APR), which is the total cost of credit including fees. It can be quite a bit higher than the interest rate
- Finance charges, which are the total amount of interest and other fees you will pay over the life of the loan if you pay off the debt on time. This can help you understand the total costs you're committing to.
- Amount financed, which is the amount you plan to borrow. This should equal the cost of the vehicle, plus any fees, minus your down payment.
- Total payments, which is the total amount you'll have paid by the end of your loan
Compare the information on this sheet with a car loan calculator (make sure all the figures are what you negotiated). If something is off, or if the dealer won't provide a Truth-in-Lending disclosure — consider walking away.
Stop overpaying for home insurance
Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.
Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.
Explore better ratesCompare dealer financing with outside financing
You don't have to get financing from a dealer, and may not want to since doing so gives them the opportunity to tack on hidden costs.
Get quotes from several banks or credit unions before you go to the dealer to see what APR you can get, how much you can borrow and how much your total loan will cost you.
If the outside financing is cheaper than the offer the dealer makes for a loan, borrow from the lender you found yourself.
Leverage competing offers
Car dealers want your business. If you can show you have a better offer elsewhere, either in terms of the vehicle cost or the loan terms, they may be willing to work with you to match it.
Don't be pressured into doing anything you don't want to do. Be prepared to walk away if you're presented with a bad deal.
This 2 minute move could knock $500/year off your car insurance in 2025
OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.
You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.
