Car Finance Advice: What To Do Before You Reach The Dealer?

When you finance your next car, you are doing more than just negotiating its price. This is a stage at which your credit plays a critical role. Also, it matters whether you are aware of and understand the different finance options. We are going to discuss here what you can do prior to reaching the dealership, in order to secure a most advantageous price.

The dealership stage is where many tricks come into play. These are intimidating and confusing and can push you to make bad decisions. Before you step in for cars on finance, you need to be prepared.

You may know what type of car you want, but did you determine its retail price? There is no easy way to tell this, because it depends on factors like demand, features to select and, ultimately, availability. Keep in mind that some fees will add up, including the license. The best way to figure out a price is to go online and see what the desired options would cost.

Car Finance Advice: What To Do Before You Reach The Dealer?

The next step is setting four important figures:

  1. The average price you would afford

The purchase costs will eventually get higher than this because the available cars on finance may have some different features or you will want to add some. This will make the price increase.

  1. The number where the negotiation starts

Salespeople will always push the start price further, so why not start yourself with the lowest that can be in that particular case? Thus you will push them into compromising. Their “lowest price” is never the truly lowest.

  1. The maximum price you can afford

Do not reveal this. Only you need to know the maximum amount you can afford. Never tell them, “I’ve only got this much.” when you do, they definitely go for that.

  1. The maximum price you will tell to your dealer

Don’t reveal the #3 value, not even when the dealer asks you to. It’s a trick they often employ. Make it work in your favor by forcing them to keep the price down.

Don’t switch your focus from the total price of the car to the monthly payments. Dealers prefer to discuss the maximum monthly amount you can afford, but that is tricking you into paying more. Ultimately, you end up paying for a much more expensive vehicle than initially planned. Sure it’s wise to think of what you can pay for it monthly but take our word for it, you can always get away with much smaller monthly repayments.

You can also get the details of your credit score and shop around for car loans before you meet the dealer. The best loan offer than you get can help you negotiate. Print any quote you may get and bring it with you to the dealership.

If the negotiations don’t please you, don’t make it drag on. Don’t insist – simply leave and then they make you a better offer. Their priority is to sell quick so refusing to be their client may actually get you a better deal right that day.

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C Victoria

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