Be A Smart And Savvy Car Buyer.
How You Could Save More Than $2,000
Knowledge Can Save You Thousands
“$20,995, 1.99%, Drive it home today!”
That is the advertisement that got a young woman to visit a local car dealership. She had done the math – by financing her vehicle for 48 months her payments would come in at $414, an amount she could afford.
At the dealer, she negotiated a bit and even received a $500 discount. But her payment for 48 months came in at $507, almost $100 more than she had planned for. What happened?
What wasn’t factored in by the young woman were other costs like taxes, title, registration, and the actual interest rate she received.
The advertised 1.99% rate came with many caveats and the young woman simply did
not qualify. But she had invested so much time into researching the vehicle and negotiating for the $500 discount that she didn’t have the energy to battle any further.
Although she drove away paying more than she wanted to, she left much wiser because she learned that her monthly payments were not the only cost that she had to consider.
The True Costs of Ownership
How much does a car really cost? And what is the total cost of ownership?
The average price of a new car is $34,000 and the combined average of new and used cars is $25,500. Of course, many factors determine the total price of your car.
The other important considerations that help determine your
total cost include the following:
- Taxes, registration, license
- Interest on amount borrowed
- Insurance premiums
- Other insurance offerings such as GAP and extended warranties
- Gas/fuel to keep it going
- Regular oil changes and tire rotations
- Tire replacements
- Regular scheduled maintenance
- Protection services like roadside assistance
If you want to calculate the average cost of owning a vehicle it is approximately 60 cents per mile driven. So, if you drive 12,000 miles a year your annual total cost of ownership is $7,200. 15,000 miles a year translates to $9,000. This is an average cost, as the cost of owning a sedan is less than that of an SUV.
Shop Around and Talk To Us
The young woman who purchased the vehicle was spending approximately $750 per month getting around using Uber, carpooling, or renting a car for weekend trips. The decision to own a vehicle was the correct one for her.
However, the young woman's trip to the dealer could have been planned a little better. Had she contacted iTHINK Financial prior to visiting the dealer she would have been prequalified for a much lower rate.
Her monthly payments at that lower rate would only be $461. That is a whopping $2,208 savings over what she will end up paying the dealer over the course of the loan!
Come talk to us before you purchase your vehicle and know that there is more to the price of the car than what is advertised.
Auto Loan Calculators
Our Vehicle Loan Rates
New Auto and Truck Loans
Term*
APR*
up to 36 months
5.49% - 18.00%
37 - 48 months
5.99% - 18.00%
49 - 60 months
6.24% - 18.00%
61 - 72 months
6.94% - 18.00%
73 - 84 months
7.84% - 18.00%
Used Auto and Truck Loans
Term*
APR*
up to 36 months
5.49% - 18.00%
37 - 48 months
6.24% - 18.00%
49 - 60 months
6.49% - 18.00%
61 - 72 months
7.44% - 18.00%
73 - 84 months
8.09%- 18.00%
Our Auto Buying Service
Benefits of buying your new car through iTHINK Financial's Auto Buying Service
- Experience haggle-free and hassle-free car buying
- Find the new or used vehicle of your choice
Get the most value when you shop your trade
Not only will you find that perfect car, but you'll get the best price for it! The only thing you’ll have to do is pick up the keys.
Not Ready to Apply Yet?
Apply for an Auto Loan Now
If you are ready to buy your next car, apply for your vehicle loan here first.