If the car negotiating experience I described in the last article sounds familiar it should. These tactics have been used by car salesman all over the US for the better part of 30 years and they are designed to make you nervous and to trick you into paying too much for your new car, taking too little for your trade, and maximize his profit.
Car Negotiating Tips Part 2: How To Counter The Four Square And Get The Best Deal When You Shop For A Car
So here’s how to turn the tables on that car salesman and get the best deal when you go shopping for a car!
- pre-approved car loanThis is the easiest way to take the wind out of their sales.
- Know your trade-in value. Visit Kelley Blue Book, Edmunds, or check out your local Auto Trader to see what similar vehicles are selling for.
- Shop with a friend or someone who is a good negotiator. Then - listen to them when they give you advice about what to do or say!
Get Pre-Approved Before
You Shop For A Car!
Armed with these things you can confidently go shopping for a car. When the salesman starts trying his car negotiating tactics you can just shut him down! When you are pre-approved YOU control the car negotiation. Because you are pre-approved for a specific dollar amount – and you’ve done your research and know your trade in value - YOU tell them what price you’re willing to pay and what you want for your trade. If they want you’re business they will work it out.
Once you've locked in a pre-approved auto loan don't let the dealer talk you into "pulling your credit to see if he can get you a better interest rate." Once again, this gives them an opportunity to make some extra money off you (dealerships make money off the interest the banks charge.They get a percentage of anything OVER what the bank approves you for that they can talk you into).
It sounds too good to be true but pre-approval really can make a difference when shopping for a car and car negotiating. It actually makes the car buying experience fun again! No more four squares, no more stress over whether you can afford an extra $50 a month in payments. It’s all there in black & white and the car salesman can’t do a thing about it! It’s a beautiful thing! So – bottom line. No matter what your credit score get yourself pre-approved, then march into that dealership and go home in that shiny new car you’ve been wanting!
IF YOUR CREDIT SCORE IS BAD BECAUSE OF ERRORS THEN HERE'S WHAT TO DO
85% of credit reports contain errors. These mistakes can literally cost you thousands of dollars in interest rates. Here's what to do to fix your credit.
WHAT PRE-APPROVAL DOES FOR YOU
Regardless of your credit score, being pre-approved for an auto loan gives you more options when you walk onto the car lot. Once you’re approved for a car loan you are in the drivers seat! You are free to shop for the BEST vehicle in your price range! Before you start shopping for bad credit auto loans though. Here's some helpful advice.
WHY YOU MUST CHECK YOUR CREDIT
In much the same way that a resume displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history. And like a resume, your credit report can influence whether you will receive what you are applying for.
AUTO LOAN CALCULATOR
So you know what your pre-approved for. But what will that translate to in monthly payments? Here's a handy car loan calculator.
