If you are reading this article then you surely must be looking to buy a car. Well, for this purpose you need a good knowledge of two things – financing and costs proposed by other dealers. The aim will be to avoid paying high as much as you can. And here we will discuss the 5 things that a car dealer will not tell you. These might help you cracking a better deal with your car dealer. Let us begin.
Things your car dealer will not tell you
Listed below are the 5 things out of many that your car dealer might not tell you.
Bait and switch offers
Here you need to keep your eye open. Do not fall for the flashy deals you will be offered. In fact, go prepared. By this, we mean that most of the time dealers offer a 0% financing option. And one might wonder how do they make money out of it? They depend on the number of cars sold due to this offer. What happens is that not everybody qualifies for the 0% financing, and once the client has decided to buy, he/she is more likely to buy with or without the 0% financing. This how they recover the loss that can occur due to people who get clear for 0%.
Last-minute financing charges
This is the time when the dealers try to make the most money. Because at this time the client is completely exhausted after a day of testing and sale preparations. But this can be a really good time for you to think again and look out for second opinions. If a problem arises in the financing then you can ask the dealer to hold the selling and give you the offer in writing. Get yourself approved from the financial institution for your purchase and make the deal.
Certain lenders reward Dealers
There is no doubt about this fact and it is true as well. There are certain dealers that get rewards or commissions to arranging finance options from certain lenders to the client. The car dealer sends your information and the values of the car to a number of financers. And these financers are competing among themselves, but not to give you the best deal, but to earn the dealer’s loyalty. This they will be able to do by giving good incentives to the dealer. So the deal choices here might not be the best for you. To arrange finance from one of your own institutions.
No need to purchase GAP from the dealer
GAP stands for guaranteed asset protection. With this, you will not be able to pay the loan for your car in case it gets totalled or stolen. This will be one of the tactics of the dealer to make some more money as they will try to make you buy this as well from their own financer but you should go with your financing institution. Not with the one that your dealer is asking for you to choose.
Dealers don’t want to you to have your own financing options
Dealers get to make money on your loan. Through you, they are bringing the business to the lenders and thus try to earn something out of it. The right thing for you to do will be to find out the price of the car you desire. And afterwards, you can look for financing options and then at the end for a car dealer. But make sure you talk out everything with your financial institution first. Also, checking out the price online will help you negotiate a better deal you desire and then inform your dealer that you have a financial institution to provide you with the finance you need. In conclusion, and to put things into perspective, you might want to take a look at this piece: A Trip Back in Time: How People Talked About Ford Transit Luton 20 Years Ago.
Final Few Words
So above we mentioned some five things that your car dealer will not tell you and you must know them in order to make a profitable deal. Also, we are providing a link, free online vehicle history check, here you can check the history of any vehicle that too for free. So make sure you gather all the required information before you make the purchase of the car you desire, from a certain car dealer.