Now comes the Car Financing part:
You have many ways to get financing
- From car dealer (only you finance through
Manufacture financing (Some time Manufacture offer 0 % financing. If you get this financing do not put large amount of money as down payment. Use that money as saving for emergencies.
- Bank Financing: Do you need to get a pre-approval, I suggest you may not need. A pre-approval (this will only add another enquiry to your credit file)
Instead you need to know your 4 cs. These are 4 cs,
- Your credit (this is your credit file Credit score range from 300 to 850)
- The higher your credit score the better chances are you can negotiate a better interest rate.
- Your capacity (your ability to make the payment each month)
- Your collateral (your car or truck you buying)
Now you know your 4 c, this is also important part of homework. Meeting the finance Manager, they call it Business Manager, F & I Manager,
He is not your friend, he is the most skilled person you ever meet, remember that when you visit him, he is there to make maximum money for the dear through the back-end.
If he offer you anything you do not need say NO to him.
He is obligated to sell you a car, but you are not obligated to buy a car from him.
Down load auto monthly payments tables from the a9car web site. Now you can find out exact monthly payment. If a 50 cent can make difference on 60 month payment.
It may not change an interest rate, but you save money.
Taking delivery, Before signing the papers inspect the car.
Make sure all options are available on the car
According to the window sticker. Now go to finance office sign
The papers, this second inspection. Check inspect thoroughly
Make sure everything is good. If you find anything
Get in writing from the dealer. Sometimes it can happen.
They can switch for low priced items.
If you are a truck make sure it has real bomber.
Your floor mat is missing, they can switch your radio,
Spare tire is missing, etc..etc..
Make sure it has tank full of gas, it not ask the salesman.
Do not get excited, don’t think you sign the papers you have
To take the delivery
You take deliver only when you satisfied completely.
Your Credit Union, Check with credit union they can sometimes offer a better financing. Shop around, find out where you can best the lowest interest rate. You got the best price on your Car you buying, now you need to get the lowest rate. Accept car dealer financing only when they can offer 0% financing.
Do not take your car home if the loan is pending.
Never sign any agreements subject to financing.
Never discuss monthly payments.
There are small tax advantage in trading your car.
Think about buying slightly used car from a private part.
Certificated pre-owned cars (same as use car)…
Some car manufactures like TELESA is selling cars directly to consumers not through a dealer.
Some car dealer’s one price selling.
Things to remember:
a. Never get car insurance from the dealer
Unless he get you a better deal.
b. Take delivery during day light time.
c. Never use an Auto Broker.
d. Never discuss your Trade In
e. Never discuss financing
f. Watch out for bait-n-switch tactic.
g. Visit the car dealer only for test drive, show up to sign
The papers and to take delivery.
h. Never negotiate on monthly payments.
i. Get your own financing unless dealer give you a better deal.
j. Avoid Pre-approval.
k. Avoid financing over 60 months.
l. First negotiate on the car price
m. Remember it take courage to negotiate with salesman.
n. Think about renting a car for a day
o. Don’t even visit a car dealer without+ doing your homework.