How You Can Figure Out Your Car Payments Ahead of Time (& Gain Leverage On the Deal)

Purchasing a car is something that you don’t do everyday. However, it is important that you understand how to make the best deal for yourself. If you go into negotiations unprepared, you are going to get taken advantage of by car salespeople who understand how to get the most money from their customers.

Use a Car Loan Calculator Before Going to the Dealership

A car loan calculator can help you figure out how much you should pay each month for your car. You can enter different variables such as the amount of the loan before a trade, the amount of the loan after a deposit or the amount of the loan when interest is included. If you check you credit before you go shopping, it makes it easier to determine your interest rate before you start applying for credit.

Look Up the Market Value for Your Preferred Car

Before you start negotiating the price of a car, it is important to know how much it is worth. This is important because the dealer is going to mark up the price of the car to ensure a profit for the dealership. If you aren’t sure how much the car is worth, you may be willing to pay the sticker price because you think it is the lowest the dealer is willing to go.

Car Payment

Car Payment

Never Be Afraid to Walk Away

In a negotiation, your biggest form of leverage is the ability to walk away. If you do not exercise this leverage, you could lose the chance to shave several hundred pounds from the price of the car. In many cases, a dealer will be willing to work with you if the dealer thinks that there is a chance of losing the sale.

Customer Loyalty Counts

Buyers who have purchased a specific brand of car in the past or have purchased a car from a specific dealership should use that to their advantage. Many manufacturers and car dealerships will offer loyalty discounts to repeat customers. Make sure to ask about such a deal before you agree to buy any car. It could help you reduce the price of the car or qualify you for a lower interest rate.

The next time that you go shopping for a car, make sure that you know what leverage you have and how to use it. Look up the fair market value of any car that you want, don’t be afraid to walk away and make sure to use your loyalty to a dealership as a way to save even more money.

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