Whether you are looking for a new auto or a used one, it can be a challenging process. No matter how much you have prepared and bargained, you may still wonder if you got the best deal. There are so many cars for sale in today’s marketplace it can be difficult to know where to begin.
Not every dealer is out to help you and it can be hard to know who is telling you the truth about car-buying. Here are five things that a dealer may not share with you that could save you a lot of money:
- The invoice price isn’t the lowest price. There is a “dealer holdback” which ranges from 2-3% of either the invoice or the MSRP and is paid to the dealer by the manufacturer.
- The salesperson will likely not mention if a used auto has been involved in a crash. If you ask, he will tell you but will not offer this information himself. Checking the vehicle history report will help you make an informed decision.
- We all know that relying too much on a low monthly payment is not a wise idea. However, dealers make more money on these low payments, so they will try to encourage you to look at those numbers rather than the APR.
- The credit report and score that you requested is different than the one the dealership gets. Dealers use an “auto score” form of the FICO formula to determine if you are likely to default on your loan.
- Negotiating can be difficult for some people, but it doesn’t have to be. Going directly to the sales manager rather than a salesperson can help you in the negotiating process.