Consolodating car loans into mortgage due to tax write off

Unfortunately, many car buyers make crucial, yet preventable, mistakes when they take out a loan for a new car.The Magnify Money research team decided to find out just where shoppers are going wrong.

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When you walk into a dealership with a pre-approved auto loan rate from a bank or credit union, you can use that as leverage.

Your dealer will be more inclined to match that rate or find you a better deal, explains Matt De Lorenzo, a managing editor at Kelley Blue Book.

You also forfeit pretty much all of your negotiating power right off the bat.

Only about one-third of the borrowers we surveyed shopped online for a loan with a lower interest rate before walking onto the dealer’s lot.We asked more than 600 car owners a series of questions about how they shopped for a car loan.The answers we received were pretty troubling, to put it mildly.To get a sense of what you can reasonably afford to buy, use a free tool like this cost calculator from Edmunds.It allows you to take into account not just your income but also the value of any car you are trading in, how much you can afford to put down on your new car, and any balances on existing car loans.Once you get the rate, you can always try to make the dealer give you a better deal.

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