You have been to the Dodge Dealership, and you have decided on the car you want to buy. Now you are ready to start the car loan process. If you haven’t started the financing process from your own bank or credit union, you can use the financial department at the dealership. There is a pro and a con to using the dealership. A pro is they are motivated to getting you approved so you can buy the car. A con is that it is usually with a higher interest rate.
Don’t take the first price offered on a car. The sticker price will be more than the dealer is willing to accept. You want the rock bottom price of the car. The dealer might ask questions like “How much do you want your monthly payment to be?” The salesperson does this instead of negotiating the overall price. The the price of the vehicle tends to get set at what works with your payments.
Keep the loan term low. It is great that with a longer loan the price per month is shorter, but it can easily leave you with an upside down loan. This means, you owe more on the car than it is worth during the length of the loan. Keep your loan terms to 4 years or less. Some loans can be extended all the way out to 7 years. Never take a loan that it more than 60 month.
Skip the add-ons. There are all kinds of extras that you can add on to your car. Things like gap insurance, rust proofing, fabric protection, extended warranties and even car alrams. The price you will pay for these add ons come with a huge mark up. Save the money and invest it into things after the car is your. Scotchgard the fabrics. Most modern cars do not need rustproofing. Check a local credit union for gap insurance. Buy a car alarm cheaper aftermarket.
Do not accept a high interest rate. Depending on your credit will depend on your interest rate. People with bad credit tend to get very high interest rates. No matter what your credit situation, it is never worth paying usurious interest rates just for the right to own a car.
Do not get emotional. Buying a car should not be based on emotion. After the excitement of the new car has worn off, you are still with this car. Don’t let the new car smell win you over. If the dealership is not willing to negotiate, walk away. Don’t let your feelings get in the way of a bad car loan.