Is This the Right Time of Year to Buy a Second Car? by Informa Research Services

CALABASAS, Calif.--On the road of life, sometimes you need another car. Whether it is for a working spouse or an older child leaving the nest, an additional car is not an uncommon request. But is this the right time of year to purchase a second vehicle? With the help of an auto loan, buying a car does not have to make your bank account crash and burn. Here are a few helpful hints to keep you on track with your new vehicle purchase (http://articles.moneycentral.msn.com/Banking/Loan/Auto.aspx).

• Check for the best rates online. Major banks, local credit unions, and auto dealers alike offer financing scenarios, and they should all be researched and considered.
• In deciding which loan to take, keep an eye out for the shortest term loan. Even though the monthly payments will be higher, you will end up paying less in accrued interest. Furthermore, paying off an auto loan quickly is especially important for car owners who tend to frequently trade in their cars for newer ones.
• Take advantage of lowered prices at car dealerships. Typically, from July to October, car prices drop with the temperature as dealers mark down current models to make space for new upcoming models. Even though interest rates might not be at an all time low, this is one way to take advantage of seasonal automotive turnover and lower the cost of buying a new car.
• When shopping for both a car and a loan, know what you can afford, both now and during the time you will be paying off the loan. Consider other expenses such as gas prices, college tuition, or medical issues that may potentially put the brakes on your car buying experience.
• While a long loan term enables one to own a car they wouldn’t be able to afford otherwise, they end up paying for it, not only in interest, but also in time. Sure, a five-year loan may allow you to own a luxury car, but you should consider how much value your car will have lost during those five years spent paying it off.

However, there are some advantages in choosing a longer loan term. One such advantage is lower required monthly payments. Because these payments are lower, this gives you the flexibility to pay more during certain months if you so desire. Either way, paying off your car loan sooner rather than later will have you cruising to fiscal comfort.

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