If you’re ready for a new car, make sure you’ll be happy with the deal you get at the dealership.

Start by deciding, before you even shop, how much you’re prepared to spend. This is great protection against the lure of the showroom—and you’ll still be thrilled with your new car.

One guideline is to shoot for a car payment no more than 20% of your disposable income. So after you deduct all your debts and living expenses, calculate one-fifth of the balance. The best scenario is for this amount to cover your car payments as well as insurance and gas.

Now think about how long you intend to make those payments. No surprise here—the longer you pay it back, the more you’ll pay overall. Stretching the loan out reduces each monthly payment, and that can be appealing. But you will pay more in total interest.

Use the car loan calculator at MidOregon.com to play with various loan terms. Then be honest with yourself about the impact on your bottom line and your other financial goals. A Mid Oregon Credit Union loan officer can help you walk through this step and explain your loan options.

And arrange for a pre-approved loan with your Mid Oregon loan officer. This means you will go to the dealership and effectively bargain for your new car with cash—an ideal way to keep within your budget and give you the most options for financing.

Now, does it matter when you go shopping? Here are a few timing tips:

  • Shop early in the week. Weekends are a busy time on most car lots. So say you show up on Monday—a seller could be motivated to bargain, knowing that business likely will be slack for a few days.
  • Shop at the end of the month. Dealers who sell enough cars earn monthly bonuses. Show up toward the end of the month, and you may find yourself getting a better deal.
  • Shop for a model at the end of its design cycle. Check websites that feature vehicle news, such as Kelley Blue Book (kbb.com) and Edmunds.com, for reporting about the “all new” models coming into showrooms soon. The last of the previous inventory is still new—but it may go at a lower price.

Your Mid Oregon Credit Union loan officer has more insider car-buying insight for you. Stop in or call (541) 382-1795 today.