Getting Ready To Finance Your New or Used Car:B

 
B. Next Step

OK, you have your loan approvals (with approvals they will usually next day you a check for you to fill in at the dealer) and did some calculations. You know an
approximate payment based on your interest rate, term, price of your car, value of trade-in down payment and taxes. You did not forget taxes did you? Your sales tax is based on where you live and register your vehicle, often times it can change by the county or city you where you live. You should also check on the price of your license plates, because that will need to be included. You can find that out from your D.M.V. in your state. They will usually know the tax rate you will be paying also. ( we have the D.M.V. links here)

One thing we have not covered yet is Documentation Fee. This can vary by hundreds of dollars from state to state. Some states put a cap on how much a dealer can charge for Documentation, buy this varies so you will need to check. I have heard anywhere from $50.00 to $800.00. Be prepared.

Now you have all your numbers to do calculations. Do they fit in your budget, are they affordable. Make this decision before you go to the dealer. We are very good at convincing you that it is affordable, so decide before you come out to the dealer.

Alright, let's fast forward back to the finance office: Finance Manager says: let me tell you about the extended warranty. It is only an extra....WAIT let's talk about my interest rate. Your rate will be XXX%, well I have an approval from Capital One or Eloan or whoever for 1.5% less. If you can meet that rate I will be glad to finance with you. Let me check on that. OK, we can meet that rate. (if not you can use your check from pre-approval) Back to the warranty: the warranty will be an extra $27.00 a month (just a number for the example). Well how much is the warranty? It is only $27.00 a month. No, I mean the total amount. It is $ 1755.00. Wow, can't you do better than that? (you would have been to warranty section already) I could probably get it for you for only $1495.00. Too much, based on the quotes I have. What quotes do you have? I have a price of $1090.00. Wow that is a good price. They will usually try to discredit your warranty. If you meet my quote I will take yours. OK. Now lets talk about Gap Insurance (good product, but see Insurance Section) it is only $8.00 a month. You know the routine, meet my quote. (If not you can usually get it for a pretty reasonable price from your auto insurance company, if you don't already have it) Next, tire warranty... do you really want it?

Now it is time for your Under coating, Rust proofing, Paint Protection and Fabric protection. (see ADD-ONS section.) If you want these items, you should be able to get a 30% to 45% discount from the dealer. Just ask and then TELL. You will usually get a substantial discount. Many local car detailers and full service car washes offer these same products at a good price.

You payment should have gone down from your original payment, depending on any warranty you may have bought at a discount price.

 Sign your paperwork and READ EVERYTHING. Your paperwork will clearly display all the numbers that you worked out. Double check it all. The price, rate, term, tax, plates, amount of interest paid over the life of agreement, warranties......EVERYTHING. READ, QUESTION and SIGN.

Congratulations,

Joe Slick