When you’re looking to buy a new car, one of the biggest factors is the price. However, that is only one area that really impacts your ability to buy the car. That’s why, if you notice the next time you’re on a car dealers lot, the car salesman will rarely even mention price. Instead, he will talk to you about financing terms, trade in value, etc. You see, everything is negotiable, and a car salesman will tweek anything to make a deal happen. Here is what you need to know beyond the price of the car.
The Loan Terms
The first thing you need to think about beyond the price of the car is the loan terms. If you’re looking at car log book loans, you need to really understand what you’re paying for. You see, dealers will try to always make the loan work for your monthly payments, which may not always mean good loan terms.
Some common ploys are: requiring a lot down up front, stretching the loan out to 60 or even 72 months, or charging higher interest rates to account for the risk. These tricks can actually make you pay more overall for the vehicle than other financing terms.
Another common tactic that car dealers will use is negotiating on the price of your trading in by doing a “package deal”. In this sense, the dealer will raise or lower the price of your trade in to make the “out the door” price work for you and them.
To avoid this, focus on the price of the car first, and never mention you have a trade in. Then, once the price is finalized, negotiate the trade-in separately, even in another transaction as needed.
Finally, dealers will always try to throw in other perks to seal the deal – like detailing, tanks of gas, window tint, or even warranties. Understand that some of these should always be a part of a new car deal, while others, like warranties, may not even be needed. Always know the value of what you are getting when discussing these other perks.
Join the free Master Your Money course!
Join the free email course and finally learn how to manage your money better, pay off debt, save more money, and reach financial freedom.