First-Time Car Buyers: 3 Car Financing Tips You Need to Know

Congrats, you’re in the market to buy your first car! While buying your first car is extremely exciting, it can also be very overwhelming. Aside from determining the vehicle style and model you want, there are several financial elements you need to understand before stepping foot in the dealership. Here are three things you need to know before you go to a car dealer in NJ.

Know What You Can Afford

Before heading to the dealership, you need to establish a budget. In addition to the cost of the car, take all the costs of car ownership into account, including car insurance, gas, maintenance, and repairs. When shopping for cars, don't fixate on the monthly payment. Consider the entire cost of the car to ensure it's something you can afford.

Know Your Credit Score

Most car buyers will need an auto loan to finance a car. The interest rate and other loan terms you're offered will depend on your credit history. You can receive a free copy of your credit report once a year from the three major credit bureaus: TransUnion, Experian and Equifax. Request a copy of your credit report, and make sure it's accurate. If you find any inaccuracies, contact the credit-reporting agency to have it corrected. 

Also get your credit score. Lenders use your credit score to determine your creditworthiness.  Knowing your credit history and score tells you what offers you can expect to receive from a lender. 

Know Your Financing Options 

If you'll need a loan to finance your new or used car, then you should understand the various options available to you. One option is to get a loan from a bank or credit union. In this case, when you buy the car you will sign a contract with the dealer and use the bank loan to finance the vehicle. 

Another option is to finance through the dealership. In this case, you will enter a contract directly with the dealer. Car dealers like Autoland Toyota may offer incentives when you finance your car through them. Even if you plan to finance through the dealership, you should get pre-approved for a car loan. Pre-approval lets you know what lenders are willing to offer you and may also help you get better loan terms from the dealer. When choosing an auto loan, take into account the loan amount, interest rate, and repayment period.

Buying or Leasing a Car? 6 Terms You Should Know

Like with any industry, car dealerships have their own jargon. When you walk into a dealership, you may hear the salespeople using terms like "invoice price," "MSRP," and "residual value," but do you really know what they mean? It's important for consumers to understand these terms so that they can make an informed purchasing decision. Read on to understand the key terms you may hear at the dealership. 

Invoice price: The invoice price is the original amount the car dealership pays the car manufacturer for each vehicle. This price does not always reflect the dealer's final cost due to rebates, discounts or incentives. 

MSPR: MSPR stands for Manufacturer's Suggested Retail Price. Also referred to as the sticker price, this is the figure that's most visible on the car's window sticker. It's also the price listed in advertisements for the vehicle. Dealerships often begin negotiations at the sticker price. Unless the vehicle is brand new or the model is in high demand, cars can sometimes be bought for less than the sticker price.

Residual Value: Residual value refers to how much the car will be worth at the end of its lease. Dealers use residual value to calculate the lessee's monthly payments. Generally, the longer the lease period, the lower its residual value is.

Realized Value: This is the actual market value of a leased vehicle at the end of the lease. 

APR: Annual Percentage Rate (APR) is the total amount you pay for your auto loan, including the interest rate and other fees. It is expressed as an annual percentage of the amount financed. With fixed-rated financing, the APR stays the same over the course of the contract. With variable-rate financing, the APR increases after a specific time period. 

GAP: Guaranteed Asset Protection (GAP) is an optional coverage for car buyers. It protects you in the event that your car is stolen or totaled in an accident. GAP covers the difference between what is owed on the car loan and what is covered by insurance. 

If you come across other terms you don't understand during your visit to Springfield Toyota, don't be afraid to ask the salesperson to explain them to you. You want to ensure you understand the terminology and the terms of the sale before moving forward.

Should You Buy or Lease a New Car?

Are you looking to ring in the New Year with a new car? If you're in the market for a new car, you've likely debated whether you should buy or lease. There are advantages and drawbacks to both, and the route you choose will depend on your financial situation and lifestyle choices. Read on to learn the pros and cons of buying and leasing a car.

Buying a New Car


If you plan to drive the vehicle for a long time, then it's probably best to buy rather than lease. When you buy a car, you own the vehicle outright once the loan is paid off. Since you own it, there are no mileage restrictions, and you can customize the car any way you like. Another major advantage is you can build equity throughout the life of the loan, which can help you buy your next vehicle. And, as the owner, you can choose to sell or trade in your vehicle whenever you want.


While you can often predict a vehicle's future market value, nothing is set in stone. Changing market conditions can affect the value of the car when you go to sell it or trade it in. Another drawback is buying involves a considerable down payment, with many lenders requiring 10 or 20 percent. It can also be difficult to secure monthly payments that fit within your budget.


Leasing a New Car

Many consumers are confused about how leasing a car works. When you lease a car, you pay the difference between the vehicle's price and its anticipated value at the end of the lease term. This is known as the residual value. Once the lease term is up, you return the vehicle to the dealership. 

Leasing requires a smaller down payment than financing a new car. But, like with buying, the larger the down payment, the better your monthly payments. In most cases, the monthly payments for a lease are lower than a monthly loan payment, unless you have a high-value trade-in or hefty down payment. 

Leases typically last about three years. Leasing can be ideal if you prefer having the latest technology and safety features, as it allows you to drive a new car every three years. Another benefit is during the lease term, the vehicle is usually covered under the manufacturer's warranty, which can save you money on unexpected repairs. However, you are still responsible for maintaining the car, including oil changes, tire rotations, and so on. Failure to maintain the car properly can result in fees at the end of the lease term. 

Along with these perks, leasing has some drawbacks too. Because you don't own the car, there are restrictions on how many miles you can put on the vehicle. The typical mileage range is between 9,000 and 15,000 miles a year. If you do a lot of driving, this is probably not the right option for you. If you exceed the mileage, then you will have to may overage fees at the end of the lease term. You will also incur additional fees if you do not return the car in its original condition. It cannot be returned with any damages or alterations. Another downside is leasing is like renting; you don’t build any equity that can be applied to your next car.

These are all important factors to consider when determining whether you should buy or lease a new car. Whether you choose to buy or lease, our New Jersey Toyota dealership can help you get the best deal on a new car. Visit our dealership, located on Route 22 in Springfield, today.

Benefits of Buying a New Car Over the Holidays

Are you in the market for a new car? Whether you're shopping for yourself or a loved one, December is a great time to buy. Demand tends to decline at the end of the year, making prices more attractive as dealerships aim to finish the year off strong. Additionally, car manufacturers offer better rebates at the end of the year to get rid of remaining 2016 models. Read on for more reasons to buy a car over the holidays.

Save on 2016 Models

New car models are released in the fall. Dealerships aim to have the old model sold by then, but this doesn't always happen. The 2017 models have arrived, and dealers are slashing the prices of 2016 models to clear their inventory. If you're interested in a 2016 model, then now is the perfect time to buy.

Enjoy Holiday Deals

Car dealerships are known to offer holiday promotions. From President's Day to Black Friday, dealers often offer special deals on holidays, and Christmas and New Years are no different. Manufactures usually offer special financing and cash-back deals during holidays, and dealerships often add on to these special offers. The deals are even better in December, as dealers and automakers are pushing to meet their annual sales targets. Buying during the holiday season can save you hundreds and even thousands of dollars on a new car.

Finally Get Your Convertible

While there are end-of-the-year savings to be had on all types of cars, convertibles are especially attractively priced in December. The cold weather has set in in New Jersey, and it's not very common for people to shop for convertibles in the colder months. To attract buyers in this slow season, more bargains are offered.  While you'll have to wait a few months until you can drive with the top down, you'll be extremely happy with your purchase come spring.

Autoland Toyota is offering a variety of specials on 2017 and 2016 vehicle models, including the new 2017 Jeep Grand Cherokee, 2017 Toyota Camry, 2017 Toyota Rav4, 2017 Toyota Corolla, and more. Take advantages of our low prices by visiting our NJ Toyota dealership on Route 22 East in Springfield. 

Shopping for Cars? How to Make the Most of the Test Drive

After a home, buying a car is the biggest purchase many of us have to make. To ensure you're making a smart investment, it's important to do a thorough test drive before purchasing a car. A short drive around the block doesn't constitute as a test drive, as it gives you little time to assess a vehicle's comfort, features and how it rides. When shopping at car dealerships in New Jersey, consider these tips to get the most out of your test drive. 

Know what you're looking for

Before visiting car dealerships in New Jersey, you should have an idea of what you're looking for. Know the options you're interested in, including the make and model. When you get to the dealership, test drive your top contenders back-to-back, so you can properly compare them. Let your salesperson know the vehicles you are interested in and that you want to test them consecutively for a proper comparison. Allow about a half hour per test drive.

Before the test drive

Before the driving aspect of the test drive, the salesperson will explain the features of capabilities of the car. Take note of the cars' safety features, fuel efficiency, and electronic amenities. For used cars, inquire about the previous owner and the vehicle's accident and maintenance histories.  For new cars, ask if it's been used in demos. 

Walk around the car to examine the exterior to ensure it's in good condition and to your liking. When you get inside, spend some time observing the interior, including the car's design, comfort level, and storage space. Also sit in the backseat to ensure there's enough space for your passengers. 

Adjust the seat, mirrors, and HVAC system to your liking, and become familiar with the controls. Take note of their location, and test everything from the locks and windows to the radio and electronic amenities. Consider whether you like the layout of the dashboard. If you are satisfied with the car, then you can move on to the driving portion.

Getting behind the wheel

When driving the car, you want to mirror your driving habits. Do you drive frequently on bumpy backroads? What about fast, smooth highways? Test drive the car on a variety of road conditions to ensure you like how it operates. If possible, bring a partner or friend along to help you make observations during the drive. Have them jot down some notes based on your observations.

Analyze the smoothness of the ride and how easy the car is to operate. Take note of the car's maneuverability. Do the brakes bring you to a quick and smooth stop? Is it easy to turn and accelerate? Also be mindful of the car's visibility, and turn off the radio to see if the car makes any strange noises or vibrations. 

Reflection

The test drive is an essential part of the car buying process. When it comes time for the test drive, don't rush through it. Take your time to become acquainted with the vehicle to be sure it's right for you. After the test drive, reflect on the experience. Think about what you liked and didn't like about the car and decide if it's still a contender.