In the third step of the car buying guide, let's take a look at the three most common types of "insurance" and what to watch for.
Auto Insurance
Imagine that you've found your dream car and wanted it so bad that you were willing to pay $75 more a month than you had originally budgeted for. It will strap you a little bit each month, but for this car it is worth the sacrifice.
Only problem is that you didn't check auto insurance rates until the day after you signed that very legally binding 5, 6 or even 7 year contract. Not only are your monthly payments higher than you can comfortably afford, but now your insurance is jumping up another $65 a month. Ouch!
80% of the dealerships that I've worked for had very strict no return policies and unfortunately for these customers, they were stuck!
Don't get stuck, especially with something as easy as getting insurance quotes. It should always be free to get quotes, it doesn't affect your credit and is typically very fast.
GAP Insurance
If you will be financing your vehicle and not using at least a 25% down payment, then you definitely want to learn the benefits of GAP insurance.
In a nut shell, GAP insurance will settle the difference between your insurance companies payment and what is actually owed to the lender in the event your vehicle is totaled out in an accident or stolen and not recovered. This can equal thousands of dollars that you'd have to pay without this coverage.
If you are not familiar with GAP insurance, please do yourself a favor and learn more about GAP Insurance once you are done reading the car buying guide.