While you are seeing options for buying a new car, you will get lots of different offers from car dealers or lender. Analyze each and every offer that you have and then choose the best option for you. For this you should first do the market research and then take the decision from where you want to buy the car. You should properly know about the process of financing and all the costs that dealer will charge you, if you have a bumpy credit history than work on it for almost three months and then apply for getting a new car. Here in this article we are discussing about the things that you didn’t know about car dealers.
1) Dealerships get rewards for financing through certain lenders.
As we all know everyone wants to get the loyalty rewards, and car dealers are definitely of no exception. The finance department of car dealership will sends your credit history, actual price and value of the car to different lenders. After that obviously the lenders will give their best prices and then dealer will pick the one that is offering the most reasonable deal. All lenders are actually working and competing with each other to get the lender’s business instead to offer you best price.
2) Dealerships don’t want you to have your own financing.
Car dealership don’t want to sell cars only, basically they are interested in selling your business to lenders to earn a profit. Their main focus is to make money through your loan. But if you have enough knowledge about the actual market rate only then you can save yourself from paying more to the dealer.
3) bait-and-switch low rates are used by dealerships for making money.
There are some luxury car dealers Manchester that offers 0% financing rates on some of the cars, now the question is from where they are making their profit in this scenario? So basically they are using bait and switch low rates to trap more people to buy low cost cars. Once the prospective buyers decide that they have to buy a certain car and they start to fill out all the paper work than they get to know that actual scenario is really different they are not qualifying for 0% rate.
4) Prefer to buy GAP insurance at your own instead of buying it from car dealership:
Prefer to have a guaranteed asset protection insurance that will protects you from paying the amount of loan in case if your car gets stolen or equaled. Some dealers will ask you to get the GAP insurance first before buying a new car, so that everything will remain completely secure. Most of the times dealers have a proper setting with the insurance agencies so that they could ask the clients to get insurance from these agents first, and in return they will get the commission or percentage.
5) don’t get agreed to pay last-minute financing charges.
There are some dealerships that will tell you some extra charges in the last minute when you are buying a new car, so be very careful and don’t get agreed to pay any extra or last minute financing charges to luxury car dealers Manchester.