Why not finance through a dealership

If you plan to finance your next car you shou id know What's in your credit file before applying for a loan you can get a free copy once as required by law if there are any errors, make sure you dispute them and have them corrected before getting a car loan if you have credit cards make sure your credit debt is at or 15% of your available credit this means if you have a thousand dollar credit don't be more than $150 balance on that card this will significantly help your credit score make sure you have all of this in place before applying for your loan.

How your card balance affects your credit score

Credit scores can go up or down depending on your credit card balance 

• Payment history (35%)
• Level debit/credit utilization (30%)
• The age of credit (15%)
• Mix of credit (10%)
• Credit inquiries (10%)

Research the dealership

Research the dealership and their reputation a lot of different way to do this you can do this you can do this on yelp you can do this on dealer rater all kinds of sites out there l'll include links for some of those but make sure you establish who the reputable dealers are in your areas and talk to your friends find out what their buying experiences have been with dealers near you 

Research The car you want

If buying new there's not a lot of room to negotiate since there's not a lot markup on new vehicles that is very true The key to buying new is there's a lot of rebates or incentives from the manufacturer and you can this kind of information available online on the car the  you're looking at if you're buying used check  how the vehicle you want is  priced  compared to similar vehicles  in the market  once you've determined that you are buying from a reputable dealership at a fair price then you can worry about financing 

  

First time borrowers should expect higher interest rates consider a co signer

If you' re financing your first vehicle you will pay a higher interest rate than people with m more credit history it would be a good idea to have a cosigner if it's possible many  times credit unions and small local banks are willing to take on more risk in the in form of first-time buyer and you can get a decent rate from them find  out  from your bank what  they would they would be willing to for you many factors are used to determine your interest rate the age of the vehicle you're looking at the miles that on it your credit score the loan-to-value ratio  so how much you're hoping to finance based on what the selling price of the vehicle is and debt to income ratio  to name a few debt to income is just how much debt you have based on how much income you have sure you have money to put down on whatever you buy.

Tax, Title, License Fees will be from 3% to 11% of the cost of the vehicle depending on which state you live in.

Give the Dealership the opportunity to arrange financing 

Now after you've spoken to your bank give the dealership the opportunity to arrange financing the dealership the ability to shop different  banks to ensure that you get the best rate let them try to get you better  rate than what your bank is offering this is very true dealership  have so many different  resources Thay can deal with they can do a fantastic job for you but  you'll have to shop your own bank and hold accountable you need to know that information before you go in.

Misconception: Every credit pull lowers my credit score!

A big misconception is that every time your credit is pulled it lowers your credit score not true banks and shady dealership will tell you this so that you don't shop around for the best rate it's a lie it doesn't matter if one bank or ten banks pull your credit as long as your credit is pulled for the same reason, you're shopping for an auto loan the net effect on your credit will be the same like one pull the  credit bureaus look  at all the inquiries  within a 45-day period as one shopping instance  where you can into trouble is if you have your  credit pulled every  six to weeks and  you don't make purchases this will lower your credit score.

Expect product offering in the Finance office

When it comes time to do the paperwork, you'll be offered additional items you can purchase while in the finance office VIN H auto DNA under spray these are all horseshit rip-off items now that came straight from the finance.

Reputable dealerships will not offer that stuff think about this if VIN edged out of DNA under spray if those things aren't offered to you in the finance office you already know you're sitting in a shady dealership.

 but this does not mean that everything offered you is garbage a gap policy is very important for you to have unless you are financing for three years or less and putting 20% down.

put 20% down you won't have to pay a thousand dollars for a gap policy if you do not buy a gap policy from the dealership and you need it will buy it somewhere else 

I would not recommend buying it from the same company that you buy your car insurance from and here's why let's say you owe thirty thousand on your car and you're an accident and your car is only worth twenty thousand dollars the damages on your car come to twenty- five thousand it should be totaled right well if your gap policy is with the same company as your auto insurance what is going to happen the insurance company will fix your car and pay the twenty five thousand because it's cheaper for them .

Service plan ask extended warranty

 vehicle service plan also known as extended warranty only you can decide if this makes sense for you if you plan on keeping your car for a long time than it is a good idea to get one 

if you're going to upgrade in three years 

do not get one since your vehicle will be under warranty of course unless you're buying a used car never buy a warranty from those crooks that will call you unsolicited or send you junk mail there are many scammers out there you can always buy a warranty from the dealership at a later date as long as the manufacturer warranty has not expired

 depending on the vehicle a good warranty can cost you 2500 to 3500 dollars many times they pay for themselves buying it at the time you purchase the vehicle allows you to include the cost in the vehicle loan if you wait to buy one when your factory warranty is about to expire some dealerships like the one that Chuck works at will let you pay it over 12 to18 months interest-free that's not a bad deal you just need to determine the risk reward for yourself could you easily pay $1,500 if the touchscreen system goes out in your vehicle is the peace of mind you get with the extended warranty worth the extra forty-five to fifty dollars a month only you can make that determination don't allow a finance man to try to cram this down your throat if you don't want it.

Paint protection Is it necessary?

protection this is something you might be interested in but find out about the product your dealership offers and do your research beforehand make sure you aren't paying for crap product that is essentially high-dollar car wax a lot of dealers have this kind of a product Chuck's dealership does ceramic coating he bought it for his car and loves it his price is six hundred eight hundred dollars cheaper than any detail shop in the area do your research you might find paid protection to be useful.

 

Expect to be helped... but don't put up with being pushed!

• Car Buyers become customers for life and great advocates for dealers who deliver!

there are many shady people working as finance officers and they give every finance officer a bad name there are plenty of good guys out there that are ethical and knowing the difference will determine how your buying experience will end up if you end up with someone

who seems pushy and high-pressure do not be afraid to get up and walk away an ethical finance manager will give you the facts and let you decide what is best for you for those who work at reputable ethical dealerships the absolute worst thing that can happen is to have a customer regret their buying decision good dealers want to give you all the information you need in order to make an informed decision and for you to be happy with your purchase when this happens the deal ends up with customers for life becoming great advocates and will refer a lot of business to them