For example, if the finance manager asks if you have any kids, you might say, “I’m not here to talk about my family. I’m here to buy a car. " When you walk into the finance manager’s office, greet them as an equal. If you’re normally a shy or timid person, psych yourself up first. Go in there and be bold about what you want. Always look at the car during the day! It’s much more difficult to see any potential issues in the dark. [3] X Trustworthy Source Consumer Reports Nonprofit organization dedicated to consumer advocacy and product testing Go to source
If you order a free credit report, it won’t include your score. Check with all 3 major credit bureaus online for your score. The types of credit you’ve had also helps lenders determine how risky it is for them to lend to you. For example, if it’s your first car, you’re unlikely to get the best rate even if you have a great credit score.
If you’re planning on trading in your car at the same time you buy, clean it out and get it washed and detailed before you go to the dealership. You’ll get more money if your car looks its best.
Because finance managers at dealerships typically have several lenders bidding for the same contract, they can often get you an even better rate than you could get on your own—but they won’t do this without some nudging from you. If you’re a first-time buyer, check out local credit unions. They’re often willing to take on more risk than other lenders, so you’re more likely to get a good rate despite your lack of credit history. Getting pre-approved for a loan can also help you figure out what your budget will be. [7] X Research source Here’s a public resource you can check out for auto loan shopping: https://www. consumerfinance. gov/consumer-tools/getting-an-auto-loan/plan-to-shop-for-your-auto-loan/
Because finance managers at dealerships typically have several lenders bidding for the same contract, they can often get you an even better rate than you could get on your own—but they won’t do this without some nudging from you. If you’re a first-time buyer, check out local credit unions. They’re often willing to take on more risk than other lenders, so you’re more likely to get a good rate despite your lack of credit history. Getting pre-approved for a loan can also help you figure out what your budget will be. [7] X Research source Here’s a public resource you can check out for auto loan shopping: https://www. consumerfinance. gov/consumer-tools/getting-an-auto-loan/plan-to-shop-for-your-auto-loan/
It’s actually smart to have the info you found handy on your phone. If the finance manager hems and haws or claims they don’t know of any rebate, you can show them the proof.
Finance managers count on the fact that a lot of people don’t care about anything else as long as they can afford the monthly payment. Focusing on the total “out the door” price puts you in control of how much money you’re financing—and that is ultimately how you’ll keep your monthly payment down.
Your monthly payment is based on the finance term and the interest rate, both of which are negotiable—work on those and the payment will follow. Settle on the total price of the car first. Then, deal with your trade-in if you have one. After that, you can work on financing. [11] X Research source
Sometimes, dealers hide fees that simply equate to more money for the dealer behind obscure initials and hope you won’t ask. For those, just ask what it is and it will disappear like magic—that’s usually all it takes.
You might say, “Is 10% the lowest rate you can get? I can finance this through my bank for 8%, but with all the resources you have at your disposal, I figured you could get me something more like 4%. "
For example, they might offer to etch your car’s VIN on the window for added safety and anti-theft protection. The dealer will charge hundreds of dollars—but you can buy a VIN etch kit and do it yourself for less than $25. They might also offer you Scotchgard protection for your interior. This is also something you can do yourself for around $25 or $30 that will cost you hundreds of dollars if you add it on through the finance office. You can also buy an extended warranty or service agreement later. In fact, you can buy it any time before your warranty expires. It’s a good idea to wait if you’re not sure how long you’re going to own your car.
Remember that you control the pace of the interaction. Don’t let an “impatient” finance manager rush you into agreeing to something you don’t completely understand. When you ask about something, the finance manager might say, “that’s not important” or “don’t worry about that. " Respond with, “If it’s not important, then it shouldn’t matter if we just take it out, right?”
If you can’t get the numbers to add up, ask the finance manager to explain the discrepancy. If the numbers are different than what you thought you agreed to, ask the finance manager why they changed.
Even if the car you’re looking at gets sold, they’ll likely have a similar one. Remember that you’re making a significant financial decision. It’s perfectly normal if you don’t want to act impulsively.
Make sure you read carefully and understand any changes that are made and how they affect the bottom line. Finance managers can try to sneak things in to get a little more money for the dealership—don’t let them do that. After you’ve signed, get copies of all of your paperwork before you leave the dealership.
