Buying a car is an emotional experience.
Financing the car is often an after-thought in the decision-making process. Car dealerships are well aware of commoditising this ’emotion’ factor and evangelise dodgy point-of-sale finance which is unregulated and rarely, if ever, in the best interest of the customer.
Eye-balling a car dealer is a brief and unpleasant experience, however it’s nothing compared to enduring subsequent inflated interest rates, exorbitant fees, unwanted insurances and warranties which stay with you month-in, month-out, for up to seven years.
That’s where you need finance broker in your corner.
To get you started we’ve put together four great tips on must-do’s when securing car finance.
1. Pre-Approvals Give You the Advantage (Provided You Time it Right)
Car dealers no longer profit from the actual sale of the car. Finance, insurances, warranties and after-sale extras, on the other hand, are all laden in profits for the dealerships.
Dealers regularly increase the sale price of the vehicle if they are precluded from providing finance. This is where timing is crucial.
Car dealerships have manufacturer quota numbers to hit at the end of the month. Come 11am on the last Saturday of the month is a good time to observe car dealerships as they’re work themselves into a frenzy to meet even-increasing quota requirements.
This is the time to turn emotion on it’s head and take advantage of the the dealer. And going in with a pre-approved car loan at this time will almost certainly guarantee you an excellent price on the car.
Dealerships generally only have a single finance provider so it’s impossible to compare what other finance providers are offering.
Using a finance broker gives you choice. You will be provided with options, so you know the deal you’re getting is right for your personal situation.
This is one of the more important tips.
The car dealer will only look at the car purchase on it’s own, and obtaining finance for this transaction is their main goal.
A finance broker assists in future-proofing your decision-making, working with you to ensure your car loan doesn’t impact future property goals.
This can save you from a lot of potential problems in the future when you look to secure finance for other purchases, including property.
4. Separate the loan from the car negotiation
Always negotiate the price of your car separately to the terms of your car loan contract.
This way you can focus on the negotiating the purchase price of the car whilst knowing well in advance the true cost of your pre-approved car loan.
Arranging finance beforehand assist in removing impulse from the emotion of purchasing a vehicle.
Up to seven years is a long time, so financing the car is an important piece of the puzzle to get right.
Good luck and our friendly finance brokers at Ocean Edge Finance would be delighted to assist.