When you are looking to buy a car, you need to know that auto dealers have a wide variety of ways to make the most of every sale. So, if you don’t pay attention, you can wind up paying more to buy and finance a new car or truck than you really need to.
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To ensure that this doesn’t happen to you, we are going to share with you some of the best car buying tricks.
4 Car Buying Tips And Dealer Tricks
#1: They Prey On Your Lack of Information:
If there is something a salesperson loves is to find a clueless car shopper. After all, you won’t be able to negotiate a fair price for the car you want to buy since you don’t even know what that price is.
So, before you head to a car dealer, make sure that you know the average transaction price for the vehicle you want to buy.
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#2: They Make It All About The Monthly Payment:
In case you’re about to buy a new car, you need to know that one of the first questions the salesperson is going to ask you is about the biggest monthly payment you can afford. Then, based on this amount, they’ll calculate the most you can spend and still hit that monthly payment by dragging out the loan for as long as possible.
Then you’ll be shown cars and trucks in that price range, which is often higher than what you wanted to spend, while you’re reassured that a better ride is well within your budget.
However, you don’t even need to get to that limit. In fact, one of the best car buying tricks that we can give you is to actually tell the salesperson a lower monthly payment. After all, the bigger the sticker price and the longer the loan, the more money for the dealership.
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#3: They Impose Finance Charge Markups:
Let’s assume that you have finally chosen the car you want to buy. At this point, the finance manager will look for the best deal on a loan. However, you need to keep in mind that this may not be it. In fact, the dealership isn’t required to tell you the cheapest loan you’ve qualified for and can legally pad the interest rate with a couple percentage points for themselves.
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#4: They Make Deceptive Payoff Promises:
Imagine that you still have a balance on your current car loan when you’re looking to buy a new one. To ensure he closes the deal, the salesperson will often promise: “We’ll pay off your loan no matter how much you owe.” However, what really happens is that most dealers will make up for that loss by charging more for your new ride, offering less on your trade-in, and imposing a finance charge markup.
What they do is that they only allow you to focus on the monthly payment and ignore the total amount you’re financing.