You did everything you were supposed to do. You put your best deal on the table and they accepted it. Now you move to the Finance Office. You think you are done negotiating and all you need to do is sign the paperwork and drive home. Not so Fast. The Finance office is the biggest profit center in the car dealership. That nice person behind the computer is a slick salesperson. It is his job to review the deal and see where he can squeeze more profit out of you.
Do not be in a hurry to sign and get out or you will be very sorry. A good finance salesperson will nail you for $3,000 - $4,000 more dollars and hide it in your contract if you do not keep your guard up. First of all, learn to say NO to anything they try to upsell you on. You must read the contract very carefully to make sure the numbers are exactly what you agreed upon. There are many little scams that occur in the finance office but the one I hear from readers the most is the Subject to financing scam.
Once you sign you are stuck. Too many people in their haste to get home, sign the contracts without reading them thoroughly. They get home and start looking through the paperwork and find items they didn't want or loan rates that are higher, the length of the loan has been extended etc. Once you sign the contracts you are stuck. You already signed a form that stated that you read and understood all the items in the contract. No court is going to hear your case. Take your time and read everything. If you are not good at reading contracts bring someone with you that can. Never take the Finance salespersons word for anything!
The Subject to Financing clause scam. This is a very common tactic finance salespeople use. If you see this on the contract do not sign and above all, do not drive the car home. Another common term is Subject To Loan Approval. What usually happens here is several days after you drive home with your car, you receive a phone call from the salesperson that your loan fell through and you need to come back in and resign through another lender for more money. They may say we have great news, we got you a lower payment, and all they have done is increased the length of your loan. They do this more often with bad credit or sub prime buyers who are usually more cooperative. This occurs quite often on weekends when the lenders are closed. Just tell the finance salesperson you will come back Monday after we have a confirmed approval.
If they don't have your loan approved, stand up and tell him that you will come back and sign when you have an approved loan with a payment book. Never sign a contract without knowing your lender, interest rate, length of loan and monthly payment. Once you sign and drive home with your new car you are at their mercy and you will end up paying more.
To learn more about this common Car Dealer scam and others, you should check out CarBuyingHelpOnline.com
So, you've thought that you can outsmart a used cars dealer? Think twice. There's virtually no possibility that any used cars dealer will let you get your side of the bargain. Why? Because they're transacting in used cars daily, and have been able to accumulate a considerable wealth of experience. It's just a matter of experience, knowing cars and people. This alone allows him to dictate the terms of transaction.
You don't think the way a used cars dealer does. For him, transacting used autos is how he makes living. Giving in to your haggling means less of the commission money ending up in his pocket. For you, it's all about trying to get the best price you think is fair. But, lacking some serious argument you'll probably accept what a used cars dealer is offering you. Besides, how often are you learning anything about used cars? Very rarely, unless you're a car buff, for whom cars in any shape and size are the daily topic.
It is important that when you go looking at used cars, you go prepared. Any used cars dealer worth his salt will be able to tell immediately if you have done your homework or not. Buying a used car is serious business, and not just a matter of visiting the nearest dealer showroom and picking the prettiest looking car at the right price. Unless you want to become the owner of something totally unsuitable, then this is simply not the way to go.
Being prepared means that you have to decide firstly on which type of used cars would suit your needs. Forget about what you want, as this will only play right into the used cars dealer's hands. You need to ask yourself what type of car will suit your lifestyle - are you married, with children, or single and out to create an impression?
Decide your motoring needs and expectations before you approach a used cars dealer. Not only will it make your job of selecting the best matching auto easier; but, you'll gain dealer's respect by at least looking well prepared. Besides, it's not too difficult to work out the size of engine, number of seats, upper price limit of the car you want.
Be mindful of what you can afford. Every used cars dealer will try to offer you an automobile that is more expensive than you can afford. Also, know what you expect from your car. Its functionality must be the deciding factor; not its luxury accessories or, the fact that it's a hot car that everybody wants to have.
Before contacting any used cars dealer, try to gather as much info about the make of the car you want. Discuss the matter of functionality with those who are going to use the car with you. After all, you don't want to buy a sporty model that will have only a bench seat at the rear, while you need to transport 3 children to school, every day. Issues of safety should be paramount on your mind.
Before you start negotiating the price with a used cars dealer, be sure that you know at least its range. It's very important to demonstrate to a used cars dealer that you're researched the market, and you know what this particular car model is sold for. If you're going to get it financed (lease or hire-purchase), find out what the interest rates are. Similarly, before you accept the insurance cover that a used cars dealer is offering you, know comparatives. Car salesmen are paid a hefty commission for getting their customers to sign often overpriced insurance covers. And when a used cars dealer offers them a price that's lower to what they think they can afford, they sign the papers and drive off thinking: what a great bargain!
You need to be treated more seriously, than some excited teenager buying his first set of wheels, and ready to pay the asking price just to get out on the open road. Some dealers will resist any bargaining attempts on your part. The best solution is to leave, and check another used cars dealer. You may be surprised how prices for the same make and model can vary between a few miles distance. Be patient, and prepared to wait, and you'll buy on your terms. Well, almost.
Both Jeffrey Taylor & Alex Baltimore are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Jeffrey Taylor has sinced written about articles on various topics from Car Loans, Used Car and Multi Level Marketing. Jeffrey Taylor is a Car Buying expert and has been helping people buy cars for over 11 years. For more information about Car Dealer Scams and links to Car Buying Tips go to. Jeffrey Taylor's top article generates over 8100 views. to your Favourites.
Alex Baltimore has sinced written about articles on various topics from Used Car, Finances and Kitchen Home Improvement. What you must know about a to buy the car you want for less money lower than is affordable? It's answered on Alex Baltimore's we. Alex Baltimore's top article generates over 1600 views. to your Favourites.