Car Shopping?
Shopping for a car can be a tricky process, and there are many options for paying either through purchasing or leasing. Your NewBridge Bank financial advisor can help you make the decision that is best for you and your financial situation.

Buying a Car
Buying a car is a process that includes several distinct transactions:

1. Buying the car
2. Selling or trading in your existing car
3. Arranging for financing
4. Potentially buying other products and services such as vehicle protection packages, extended service contracts, etc. Once you sign the contract, you own the car and are obligated to make all payments, so make your decision carefully.

The following are some tips on getting the best deal possible:
1. Figure out how much your trade-in is worth by checking the Kelley Blue Book or the National Auto Dealers Association (NADA) Used Care Pricing Guide available at your bank or local library.

2. Know how much you can afford to spend before you go car shopping. Know your credit score and credit history, how much of a monthly payment you can afford and how many years you may need to pay off the car.

3. Information on the actual dealer cost is available through Consumer Union or The Car Book, available at most libraries. Used car wholesale and retail prices are available through the Kelly Blue Book and the NADA Used Car Pricing Guide.

4. Auto loans are typically 36-, 48- or 60-month loans. Low APR rates that are advertised at auto dealers are typically for short-term loans to people with excellent credit. Compare financing terms between the car dealer's bank /credit union and your own.

5. If the dealership is offering a low APR versus a rebate, calculate which is better. A large rebate may be better in the long run because you could pay off the loan early and save on the interest.

6. Consider using a home equity line of credit or refinancing your home to pay for a new car. By doing this, you could get much lower interest rates than by having a standard car loan. And, in most cases, you will be able to deduct the interest that you pay on the loan, which could lead to a large amount of savings.

Line of Credit-In most instances, you may borrow up to 75 percent of the appraisal value of your home minus what you owe on your home loan.

Resources for New and Used Vehicle Pricing