If you’re purchasing a new car, be prepared for aggressive, expensive tactics used by auto dealerships. Equip yourself with some useful tips and keep your money in your pocket.
Caution with Interactions
You need to keep your guard up at all times. Every person you deal with is looking to profit off of you, even if they say they do not receive a commission off of your purchase. Be especially cautious of the finance office, which may even be designed to make you relax and feel more comfortable.
Know Your Credit Score
Knowing your credit score is a good general rule of thumb, but especially when purchasing your car. If you don’t know your credit score, you are making it easier for a finance manager to use that lack of knowledge against you. The dealer may offer you a rate on a loan that is much lower than you qualify for, and then wait a few weeks before telling you that financing can’t work. Then, they will present a new rate that will be extremely high – but you already signed the contract and have the car so there is nothing that can be done.
If a loan seems too good to be true, don’t go for it. If you’re having trouble resisting temptation, ask when the offer will expire. Then, show it a lawyer or your credit union to make sure it is a good deal or even possible. If the dealership tells you that the deal is good for that day only or that you are not able to take the contract with you, it’s most likely that they are trying to limit the time you have to think about it and do your own research.
What You Should Do
Be prepared with financing before going to the dealership!
With Aspire, we offer:
- Up to 100% financing and variable terms
- Rates as low as 1.99% APR* for new cars and 2.99% APR for used cars
- Vehicle history reports
- Up to 10% discount on auto insurance through TruStage and MetLife
- Discounted Guaranteed Asset Protection (GAP) and Mechanical Breakdown Protection (MBP)
When going back to the dealership, don’t let the salesperson know your financing plan, because then they’ll be less flexible with the price. They will usually be more willing to negotiate on the sales price when they think they can make up for it in financing so don’t let onto the fact that you’re two steps ahead.
And remember, if you’re stuck in a high-rate loan, you can ask us how you refinance that loan and most likely reduce your monthly payment. Click here to apply for our loans.