Tips for Financing Your Car

If you want to save money while you are negotiating you should negotiate from the dealer cost up and not from the MSRP down. You just need to remember that dealer cost is not the same as the factory invoice.

Some dealerships refuse to negotiate over the cost of a car. If the dealership that you go to won't negotiate, go somewhere else. The reason some dealerships refuse to haggle is because they want to add extra fees to the MSRP. You will need to decide what kind of buyer you are in order to get a negotiating stance.

You do not want to set yourself up as a monthly payment buyer. That is a guaranteed way for you to get a higher payment fee. Tell them you are buying a car and you will decide if you can afford the costs after you choose the car and negotiate the right price. Better yet, tell them you are looking for a cash deal. You can always change your tactics after you have the right deal set. You can get off-site financing for your price and get the best deal all around.

Some dealers will offer to give you a better deal if you finance your car through them. We can guarantee that this will not be the case.

Monthly payment buyers are considered suckers in the eyes of the salesman. If you can afford so much per month, he can sell you anything and add any extras as long as he stays within your payment price. Suddenly your two and a half year deal becomes a four year deal.

Of course the worst thing that you could be is an impulse buyer. An impulse buyer is just another word for victim. Impulse buyers can often get sucked into the hot car of the moment and usually get taken for as much as $10,000. A dealer can see this buyer coming a mile away.

If a dealer approaches you about the hot car, tell him you are not interested because it will not be worth the money next year, as the new hot car will be out by then. You dont want to buy a car that is in demand because it is the easiest way for a dealership to mark up the prices. The MSRP always looks low, but it is the extras and monthly payments that will take your money.

Remember, the resale value of the car doesn't change no matter how much money you originally paid for the car. It still depreciates in value from the factory invoice.