Pat Goss' Tips & Expert Advice

New Car Financing

New cars make a lot of buyers excited. Knowing that you are the only person who has ever driven the car beyond the occasional test drive can be an exciting element to buying a new car. New cars do cost more than used cars in most instances, and when you purchase a new car you will realize an immediate and significant depreciation. New car financing, however, is usually at a much lower interest rate than used auto financing. Lenders like financing new cars because the car is usually worth more.

Some dealerships will allow new car buyers to purchase a car with little or no down payment, although it is always preferable to put a large down payment on a loan because it lowers the total amount of interest you will pay for the duration of the loan. Just be sure that you aren't buying a new car so you can have that new car smell; they sell that in bottle form nowadays.