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With affordable auto financing, buyers can capitalize on hot vehicle market

Posted on Monday, January 20, 2014 at 8:55:50 AM

Some new cars are flying off the lot, according to Edmunds.com. The average amount of time a new car sat in November was 59 days, but a few makes clocked in a lot quicker than that. The 2014 Land Rover Range Rover was the fastest selling, at nine days, followed by the Chevrolet Corvette and the Jeep Cherokee.

With an auto market this hot, buyers will have to be prepared well before ever setting foot in a dealership. Recently, Christine Dikdan, of Home Loan Investment Bank, took the time to explain a few tips and tricks for anyone interested in a new vehicle this year. 

For example, Dikdan recommended that buyers "research media, then shop and compare dealers for best pricing and incentives." She added that "incentives can include special financing rates and terms, vehicle upgrades, or both. Pick what is right for you. My best advise is always to select the vehicle you want, then go compare the similar late model in the certified pre-owned or used lot. You will usually get a much bigger bang for your buck purchasing used. The smaller the dealership, the smaller the overhead - and that means more negotiating power on price. We are moving into 'Dealer Christmas,' where many are looking to upgrade or purchase using a tax refund or holiday cash."

Many buyers may be wondering how much they can truly afford. One key step is auto financing, but there are other complementary methods to purchasing a new vehicle. 

"Financial discipline is easier said than done," she explained. "Things always come up and life is expensive. The best way is to budget monthly and stick to it. Automatic withdrawal of a set amount into a separate account that is payroll deducted is a good option. Out of sight out of mind. When you need the funds you may be surprised at how quickly that account accumulates."

In order to get the most out of auto financing, buyers should focus on what they really want out of a vehicle. According to Dikdan, an easy way to do this is with a list. What is absolutely necessary should go at the top, followed by what is desired, then what can be lived without. These elements will all factor into price, and could help any buyer drive off the lot in their dream car.