Buying a car can be a stressful process. After a long negotiation with the salesman on the price of the vehicle, many buyers are quickly taken over to a finance manager to talk about leasing and loan options.
According to AOL, this is where many dealers make most of their money. By getting a driver into a loan at a high interest rate, a dealer can make even more money than he could selling the vehicle. This is why buyers need to be extra vigilant at all times.
The news source also reveals that many dealerships will offer extras like extended service warranties, paint protection and various types of insurance. These are other ways to add last minute profits onto the vehicle for the dealer. Many of these will be pitched to the buyer by the “business manager,” or someone with a similar title. Yet buyers beware – this employee is usually a salesperson who works on commission like the rest of the sales team.
AOL recommends arranging financing ahead of time in order to counteract this. Even drivers with bad credit should be able to secure a car loan before they head into the dealership by applying online and comparing interest rates. Then they’re in a better position to negotiate. Having a car loan ahead of time also gives the driver a budget to work with – they’ll know exactly how much they can spend on a vehicle and avoid unnecessary extras.