You know exactly what kind of car you’d like, right down to the tiny details like color and accessories. You’ve done the research, which indicates that now’s never been a better time to buy. It seems like you’re more than prepared to head down to your local dealer, pick out your dream car and sign the dotted line of the contract for car credit – right?
Actually, the hard work has just begun! Getting financing for your car can be a bit of a process, especially when you’re negotiating for the best rate. Your car dealer wants to make as much money as possible, while you want the most attractive loan rate available. So what’s a savvy consumer like yourself to do? Simple: don’t fall for these popular tricks, and you’ll be well on your way towards driving home that dream car – without the huge hole in your wallet!
Skimping On Monthly Payments. That low monthly rate may seem attractive now, but fast-forward a few years later when you’ve paid thousands of dollars in interest – it doesn’t look like a great deal anymore, now does it? You may think in terms of what you can afford for monthly payments, but when getting car credit, negotiate with the bigger picture in mind. The future health of your bank account depends on it.
Indecisiveness. If you’re looking at a new car for the family and have your wife or husband in tow, resist the temptation to ask one another questions in front of the dealer. Car dealers excel at playing indecisive buyers off of each other, so make sure you and your partner know exactly what you want before entering into negotiations.
Not Having A Competitive Offer. If your dealer knows that you’re dependent upon financing, you can bet that you’re not going to get a great offer. However, many lenders are now offering consumers the opportunity to get pre-approved for a loan before entering into negotiations with a dealer. Having another offer on the table will make your dealer work harder to make sure you get the best car credit loan possible – which means that you’ll have the upper hand when it comes to financing!
Urgently Needing A Car. If you hint to the dealer that you need the car right away, you lose much of your negotiating power, since he or she knows that you can’t walk away. This sense of urgency means that the dealer can be more rigid in what terms he or she will offer you – so even if you need the car that afternoon, put on your best poker face to get the best car credit loan!
Just because you have to get financing through your dealer doesn’t mean that you have to resign yourself to a car credit loan with an outrageous rate. Just watch out for these tricks, and you’ll have the upper hand during even the most intense negotiations.