If you want to spend wisely for your new car, watch out for these common car dealer tricks:
“Your credit isn’t good enough” – One of the most common car dealer scams is when the sales person makes your credit rating look worse than it actually is. They do this to make you agree on a financing option with a higher interest rate. Know your credit score before you visit the dealer.
“How much can you afford per month?” – Don’t be fooled by this question. Lower monthly payments don’t always equate to a cheaper purchase. Even if you have an attractive monthly payment, if the loan term is stretched to 72 months, you’ll again have a higher interest rate. If they don’t stretch the loan term, they may require a big downpayment. You can avoid this by securing your own financing with the bank of your choice. That way, you can diligently look for the best loan option available.
“I’m already selling it to you at a bargain” – Some sales people will make it appear that you’re buying a car at a bargain because their offering you a price significantly lower than the sticker price. But the MSRP isn’t the price of the car, the invoice is, so don’t base your negotiations on the sticker price. Base your negotiations on the invoice price of the car you like and the average price paid by the consumers. Ideally, you don’t want to pay more for the car compared to what other car buyers are spending for it.
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