Most of us have purchased a car. Nonetheless, we all might have missed some small details that could have saved us a few thousand dollars. These would include knowing what Annual Percentage Rate (APR) we are eligible for before financing, shopping online to the extent possible and not pay for extras.
KNOWING YOUR APR BEFORE PURCHASING A CAR
It could be counter-intuitive to purchase your car online, however with due diligence and knowing which car, model and accessories you want you can even ascertain what APR you are eligible for.
If we just depend on the APR advertised and promoted in the mass media, we end up going to the car dealership pondering we will be receiving the same APR. However, the reality is that many of us would not have the credit scores and the credentials to become qualified for such spuriously incredible APRs. What happens as a result is that we find out very soon, our rates are relatively much higher and we have to make a higher down payment and even our monthly payments are relatively much higher than advertised and promoted.
What you do is first go to a bank and see if you can secure funding for the financing at rates similar or close to the APR advertised. You then obtain the non-obligation check to the car dealership. If they can beat the APR, then you go with them. If not, you should be happy you cannot be fleeced.
KNOWING YOUR ONLINE OPTIONS
Salespeople at car dealerships earn their income mainly by the commission. In other words, the more cars and more profitable cars the salespeople manage to sell, the heftier their checks are.
Accordingly, it behooves prospective car purchasers to go online and see the APR and make the whole transaction CONTINGENT ON free delivery. This ensures you do not fall into trap of paying extra for items you do not need and eliminating middlemen without allowing them to rewrite the contract and sell you cars at heftier prices.
KNOWING YOU CAN ELIMINATE OR NEGOTIATE SOME COSTS
Probably, you can save by not paying for VIN etching, fabric protection or dealer prep. In addition, most often you do not need extra warranty if the car is a reliable car. Alternatively, you could pre-negotiate your warranty price even before you sign your contract.
It all depends on knowing what you want and how much you should pay for it based on your own due diligence. If you do your own due diligence, then you are more likely to save some money and obtain the car you want.