It’s easy to get caught up in the excitement when buying a new set of wheels. When the biggest thing on your mind is holding those keys and getting behind the wheel, it can be easy to rush through crucial steps, like finance. Car dealers understand this and are known to take advantage of the opportunity to sell you finance packages that are in the interests of the dealer rather than your needs. In reality, car finance is an expense that should be considered carefully. It’s important to weigh your options against your needs and budget in order to find the best deal that’s right for you.
Here are four crucial things to consider if you’re thinking about financing your new car through a dealer, rather than taking out a loan:
Aside from the immediate convenience, financing your vehicle through a dealer doesn’t offer much value and can set you back in extra costs in the long-term. It’s always crucial to ask about any hidden costs when discussing a plan, as dealers may attempt to downplay or hide these completely. A few common elusive costs that often go undiscussed during negotiations include:
- Establishment fees
- Annual fees
- Early exit fees
- Late payment fees.
If you settle without being fully aware of additional costs like these, you could potentially end up with a very expensive loan and possible restrictive terms and conditions that could affect you in the future.
Contracts before details
Often car dealers require you to sign a contract before giving you a guaranteed interest or repayment rate. They understand that not doing so would then enable individuals to use the quote to bargain with other car dealers, hence the use of contracts. Often before signing, lengthy negotiations are involved and by this stage, many people feel obligated to commit to a deal. It’s important to evaluate other options and avoid being pressured into signing a contract, especially when better options are available.
Considering car dealers make a living out of closing deals, to them, time is money. That’s why it’s not uncommon to feel rushed into agreeing on a deal you’re not entirely confident in. When negotiating a deal, it’s important to understand all the terms and conditions, including how the plan will affect your tax and financial situation presently, as well as down the track. Dealers may attempt to skim over details reassuringly. However, if you agree to a deal without having full confidence in what you’re agreeing to, your deal could prove very costly or not suitable for your personal situation.
Tricks of the trade
Overall, it’s important that you remain in control and drive any negotiations and deals yourself if choosing a car dealer to finance your vehicle. We’re all aware of the outlandish tactics dealers use to secure deals with individuals. Just as dealers can attempt to rush you into agreeing on a deal, they can also use intimidation and persuasive techniques to sway you into an agreement. Ensuring you remain confident, in control and aware of what you want will help you to make more informed and confident decisions when choosing to finance through a dealer.
If you’d like to explore other options, Make Wealth can assist you in securing a car loan that is tailored to suit your short-term and long-term financial obligations and lifestyle. For more information on our FREE mortgage broking services, please call us today on 0449 978 675 or simply email us at [email protected].