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Reply to "Car financing basics. How much money to put down?"
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[quote=Anonymous]Try to finance for 48 months or less. Avoid terms like 72 months (6 years) even if they advertise a lower monthly payment. Negotiate the price of the car, not the monthly payment. Don't fall for the dealer trick of trying to tell you what the car will cost per month. Get the out-the-door-price and do the math yourself on a 36- or 48-month loan. 24 if you can swing it. Ideally get your loan approved by a credit union or your bank before you go car shopping. Dealer financing can compete. You will probably need to buy gap insurance, which covers you between the value of the car and what remains on your note in the event of a crash.[/quote]
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