Retailer Sy Syms always said, “an educated consumer is our best customer.” The same motto stands true for consumers looking to score a great rate on dealer financing during the recession.
During trying times, dealerships often advertise amazing deals promotional interest rates to entice consumers. If you are getting tempted by the 0 percent offers and are interested in securing dealership financing, there are several things you need to do become an educated consumer and to get the best dealer financing rate available. These steps include:
- Know Your Credit Score: Auto dealership financial loan officers will pull your credit history report to determine how big a risk you are. Only those with the best credit scores will be entitled to the fantastic promotional offers touted by the dealership financing office. Knowing exactly where you stand is an important step in the process.
- Improve your Credit Score: Buying a car does not tend to be a spontaneous moment for most consumers. Planning for the event is the best way to approach the task. After you pull your credit score, you need to take every step possible to improve your credit score. After you work toward improving your score, it may take several months for the increase to appear on the credit bureau ratings.
- Separate Your Transactions: Although it is often feels like one transaction, trading in your vehicle, negotiating a new price and securing your auto loan are three unique actions. You need to take the time to research and handle each one individually. That way you can get the most value for your trade in and have more money to borrow to pay off the car. The less money you have to borrow, the greater chance you have of getting a lower dealership financing rate.
- Call the Financing Department in Advance: If you have your eyes on a particular car and plan on working a specific dealer, you can call the car dealership financing team and ask them to crunch the loan numbers based on your particular scenario. That way, there will be no unpleasant surprises and if they cannot give you a great deal, you can find auto loan options elsewhere.
- Avoid Add-Ons: Car dealerships are always on the up sell and those extra warranty and protection plans can add thousands onto your loan amount. The bigger the loan, the more money you may be charged.
Only by educating yourself can you gain the knowledge needed to comfortably work with the auto dealership financial department and to get the best rate possible. If you have read the above steps, and think you are still going to get charged a substantial interest fee, then this may not be the best time to buy a new car. There is no need to rush as there will be plenty of cars still on the market several months from now.
