Useful Tips

Car dealer finance

Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.

Definition
Car dealers not only sell cars, they sell finance too. You should get your car finance pre-approved before you go car shopping to help you negotiate a great overall solution – for both the car & the finance! My equipment & car finance experts can help you out-negotiate the car sales people!

Things to consider
Buy your new car at the end of the month as the sales person will be keen to get their sales targets.
When you are talking to a car salesperson, they will ask if you have a trade-in or if you need finance – Say “no”. Get them to make their best offer on the vehicle based on a cash price. Why?
Dealers use car finance PLUS the trade-in PLUS the new car price margin to make their overall profit gain…PLUS they will offer “fries” with it (Leather conditioner, floor mats etc), so they can further increase their margins.
Great business for them, but you pay for it out of your pocket
Car salespeople often dramatise the negotiation to make them appear to be on your side. Does this sound familiar? “I will have to go and talk to my Manager to see if I can do a better deal”
Don’t provide your financial data to car dealers….they sell cars, not finance, and won’t be there for you for all of your other finance requirements you need for the future….we will!

If you just want the car – only ask for the car and don’t get confused by their integrated sales pitch.

What about the recent marketing campaigns by the manufacturers offering what appears to be very low interest rates?
If these deals sound too good to be true –then they probably are
There may be conditions such as not be able to negotiate the price of the car. The small print will say “offer is not available on discounted or negotiated sales”
The terms of the finance may not be negotiable – eg your loan term may be set.
It may only apply to specific models often including slow moving or old stock