HOW MUCH? - car buyer incentives

Car dealer auto loans and incentives for buyers.

   
 

In recent years, competing car manufacturers have started offering incentives for car buyers unprecedented in the auto industry. These include loans with very low or even 0 interest rates, factory rebates on many new models and cash back.

But, take a closer look at some of the facts regarding these great offers.

Car dealership financing.

It is always better to have an approved auto loan from a bank, before making a trip to a car dealer. In this way, you can see the price of the vehicle and the cost of financing it as two different things. When the dealership finances your new car, the two figures are not clearly distinguished. A sales person will work hard to confuse you as much as possible, and the phrase “low monthly payments” will be stated over and over when you ask for loan details, or a price break down. Most likely, the dealer will make an average of $300 on your loan, which will be sold the next day to a real lender anyway.

Low and 0 percent interest rates.

These are limited to certain models and come with many conditions. In general, they are reserved for people with a very high credit score. In order to qualify for a low rate, you have to accept the dealer’s price of a car.
There are times when a dealer’s low interest rate financing is truly the best deal. To make sure you are getting it, make it clear to a salesperson that you are not interested in financing the loan through them. Negotiate the car’s price and see what you would pay throughout the whole life of a loan on which you were already approved (or could get somewhere else). Then compare that figure with the total you would pay on a dealer's special financing loan.

Factory rebates and cash back.

Essentially, both are the same thing and are offered by car manufacturers. They can greatly lower the price of a new vehicle. Cash back, which can be as high as $5000, is automatically applied to your down payment, and sometimes a portion of it is used to buy extra options. In order to get the best deal possible, get approved for an auto loan first, negotiate a car price with at least two dealerships in your area and take advantage of factory cash back.

Car Loan
© iStockphoto.com - gulfix

Tips for dealing with car dealers:

Car salesmen are trained to use high pressure tactics to confuse you as much as possible in order to disguise the potential profit they will make from you. Here are some general tips to help you get a better deal.

- It is believed that shopping on rainy days, or at the end of the month or the year, might get you a better deal.
- Visit at least two different dealerships to see how low they are willing to go on their prices.
- Use online resources to get a general idea of the price of a model of car that you are interested in.
- Find out what the Manufacturer's Suggested Retail Price is from the Kelly Blue Book.

See also: buying a used car, auto loan online, lowering car insurance, online auto insurance,

 

 

 

Site Map | About Us | Legal Disclaimer & Privacy Policy | Related Links | Contact Us
How Much?
Copyright © 2005-2015 www.HowMuchAnswers.com

Cookies Policy: This site uses cookies from Google to deliver its services, to personalize ads and to analyze traffic. Information about your use of this site is shared with Google. By using this site, you agree to its use of cookies. Learn More