When you are buying a car or a truck and you are not paying cash for the full purchase price car dealer sells you two separate things - the vehicle itself and the means to pay for it. The customers almost always test drive the car, however, they don’t always test their financing. One of the things the car buyer should remember is that he/she is paying one amount for the car and another amount for the lease. Your car dealer probably gets separate profit from each of these items.
If you are not well informed you can become a victim of one of the tricks dealers use to force you into the deal. Car buyers should know that they can negotiate not only the cash price of the vehicle, but also the terms of financing. It’s a good idea to have the copy of the ad of the vehicle. Make your own notes on what was sad. Do you want to buy or lease the vehicle? Make this kind of decisions before going to the dealer. Take a calculator and count the total amount you are able to pay over a set period of time.
The next step is financing the vehicle and meeting with the finance manager of the dealership. The finance manager of the dealership may try to trick you by speaking about “win-win” situations. That’s when you should “test drive” the financing:
1. If your credit application is not accurate don’t sign it in blank.
2. Is the contract labeled Lease or Retail Installment Sales Contract (loan)?
3. Know exactly what is the cash price of the vehicle and how is that different from the total amount you will pay?
4. Find out the highest and lowest interest spread the bank is willing to offer.
5. If there is a rebate, make sure it is stated on the contract.
6. If you are purchasing add-ons and accessories, does the contract list these items? Are these items included in the price you negotiated to pay (“Itemization of Gross Capitalized Cost”)?
7. In case of trading in your old car, are you being given a credit or being charged a negative?
8. Make sure there are no mandatory arbitration clause in the contract.
9. Calculate the monthly payments you will be making, as well as the number of months. Calculate the total amount you are to pay and make sure you will be able to pay it.
10. Make sure the VIN on the contract is the same as the VIN on the car you actually test drove?
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