Most people know to be wary of dealership financing, but just how wary should you be? You may be shocked to find out how even the most innocent of comments that you make can stir up the sharks in a dealership’s finance department. Here are a few tips coming from a retired auto finance worker.
- Never tell anyone what your budget is. If you do, that is the only number they will focus on. They will sell you more car than you need or want. Anything to make sure that you leave with a car that costs you at or slightly above your stated budget.
- Never let the dealership arrange your financing. Dealerships get as much as 10% as a kickback for arranging bad credit auto loans through certain banks, often with less favorable terms for you.
- Never buy an extended warranty from the dealership. There are several companies online that will sell you an extended warranty for half what a dealership wants, or less.
Going into a dealership is like entering a minefield on purpose. You have to be careful and be prepared or the deal will blow up in your face.