So you have decided to purchase a car and found the exact make, model, and color you want. If you don’t have financing from a bank, you can consider the one offered by a dealership. Expect the manager and the salespeople to try to sell you everything, from car accessories to extended warranty. But, you can only get the best deal on your car loan if you learn to negotiate. The tips below should be able to help you:
Negotiate the Car Price
Car salesmen will try to get you negotiating your monthly payments instead of the price of the car. They will ask you how much you can pay every month and what you want your payment to be. If you let yourself fall for this technique, you will have to pay more for your vehicle. Thus, focus on negotiating the price of your vehicle rather than your monthly car payments. Learn more at captaincash.ca.
Choose a Shorter Loan Term
Car dealers have financing programs that will let you lower your monthly payments by lengthening your payment terms. These days, you can finance a vehicle for up to seven years. However, there is no point opting for this payment term since vehicles tend to lose value each year. Try to get a loan term of four years or less.
Ditch the Add-ons
Managers at dealerships wilt try to get you purchase all options available such as fabric protection, gap insurance, extended warranties, car alarms, and more. Although you can use these items, the dealer markup is just crazy. Therefore, skip all these when you buy a car and just focus on the vehicle itself. You can purchase extras separately later on if you have to.
Choose a Low-Interest Auto Loan
Loan providers will consider your credit rating when determining your interest rate. Just because you have a less than perfect credit score does not mean you can take out a loan with very high interest rate. People who have good credit rating will get loans that have low interest but even if your credit status is not that impressive, take the time to find a car loan that works for your situation.
Don’t Decide with your Emotions
Purchasing a vehicle can be an emotional decision. Once you test drive a vehicle and feel comfortable with it, you might easily fall in love with it. Although you want to choose a car you desire, you should be ready to walk away if the dealership is not willing to negotiate. Never let your emotions get you stuck in a bad loan which you might regret later.