Financing is a touchy subject especially when it comes to buying a care or a house. There are a few ways however, to beat the auto dealer. Most auto dealers will try to sell you on the highest price that the vehicle is worth. Many times it is way more than what they purchased the vehicle for.
The first thing that you want to do is shop around for your own financing. Many of the times you can get a much better rate by going through a credit union or a local bank. By doing this you will be able to know exactly what you can afford. You will also know the term of the loan most are either 60 or 72 months. Once you have been approved you can go out shopping and have an upper hand over the dealer. This is because you know the amount you want to spend and you also, know what that monthly payment will be.
Before you go to the dealer you will want to know the car that you want. Look at prices on the internet and in the paper. Compare different dealers to see who has the best price to offer. This way when you go into the car lot you can tell them what you want and the price you are willing to pay. Remember you have a check that is good at any dealership that you find a vehicle that you want. Once you tell them that you already have your own financing they will do what ever it takes to earn your business. This is because they do not have to work with the banks to get you the best deal.
The main job of the dealer is to sell you and make a commission. If they do not have the car that you want they will try to sell you on something else that they have on their lot. Do not fall for this. You could end up settling for something that you really do not like or want. Then you are stuck with it for the next five to six years which is normally the term of most loans.
The best thing to do is to shop around go to different dealerships and price their cars. The best time to look is at the end of the month. This is because the dealerships get new cars in the beginning of the month and they are trying to get rid of the cars that they had. They also are trying to meet their quotes for the month and make up for any commission that they might not have gotten. So, for this reason they are more likely to try to make a deal to earn your business.
You also want to make sure that you have enough money to put down on a car to get you a lower payment. For every thousand dollars you put down you lower your car payment by 20 to 30 dollars. You will also wan to keep in mind that you will have to pay taxes and plate fees. All of this adds on to the price that you will be financing. The next thing you will need to get is a warranty any time you are buying a used car you have the potential to buy someone else’s problems. For this reason you will want to ask the dealer for a carfax report. This will tell you all the history of the car if it has ever been in an accident or if there has been any engine work done. This will let you know if the vehicle may have other potential problems.
To end up with a payment that you are happy with and a car that you want you will need to follow the previous suggestions. The goal is to for you to have what you want and can afford. Remember the dealer does not know your financial situation and what may seem like a great deal to them is just not for you.