New Car Financing Tips: How To Get The Car That You Want

So you've decided to sell the old clunker and get the latest Toyota, GM, or BMW model on the market. Like nearly 17 million other Americans you are in the process of accomplishing a deed that many dream about but not everyone realizes: you are getting the car of your dreams and you aren't going broke doing that. Yes, not every new car purchase has to set you back financially. Sure, you could pay cash if you have the money, but if you don't you'll need to think of some creative alternatives to make a new car purchase a reality. Let's take a look at some conventional and not so conventional ways you can put that new Chevy Impala in your garage.

New car prices are finally easing after historic run ups in price over the past two decades. Credit increased competition and a much more savvy consumer with forcing automakers to halt their annual "sticker shock" campaigns. Today, consumers have plenty of choices and automakers have finally caught on to the need to offer competitive pricing across the board.

If you are looking to purchase a new car the following are some financing options to help make your dreams come true:

Pull Your Credit Reports: Before seeking financing, pull up your three free copies of your credit reports from Experian, Equifax, and TransUnion. You can get these reports for free from AnnualCreditReport.com and pay a nominal fee for your credit scores. Examine your reports closely to make certain that no errors exist; if they do, then contact each credit reporting agency to have them make corrections. If your credit score is high, then you have the best chance of securing favorable financing.

Get Credit: A financing arm such as GMAC will be very interested in underwriting the loan for your Chevy Impala. As a partly owned subsidiary of General Motors, GMAC is in the business to help GM car owners get financing. With your excellent credit, you can demand their best rate which could include zero percent financing. Moreover, having all rebates applied to your loan will reduce your costs. Learn if employee pricing applies to your purchase too; you could save thousands of dollars off of the sticker price!

Other Financing Options Worth Considering: Borrow money from your 401(k). Get the funds you need and pay yourself back with interest. Or, take out a home equity loan and pay it back in five years; you'll be able to deduct the costs of the loan on your federal income tax statements.

Of course, if you do have the cash then consider taking out a loan anyway at zero percent and stashing the funds in a CD for 48 or 60 months. Why not let GMAC fund your purchase while permitting you to earn interest on your monies?