Buying a Car is a stressful ordeal, it usually means you've got to negotiate with high pressure sales people at Dealerships and have your Credit Report send to 5-50 different lenders to get you approved for a loan. But these Car Dealers have secrets they don't want you to know...
1. Dealerships are paid by Lenders when you get an Auto Loan from a Car Dealer. They will mark up your rate and take "points on the back" of the deal.
2. Dealerships have a significant mark-up on their vehicles already, so they have wiggle room on the price, they just don't tell you.
3. Dealerships have one goal - having you drive off the lot with a vehicle the same day you walk onto the lot.
4. Dealerships are not your friend, they're not there to help you. Their goal is to get you to pay the highest amount possible for the vehicle while also getting paid by the Lender when they "sell" you a Loan.
So how do you get the lowest rate and price on a vehicle!?
My name is Jesse Rodriguez and I'm a Credit Expert with CreditCEO, I've been helping consumers improve their credit, get out of debt and make savvy buying decisions for over 11 years now. One of the toughest decisions is buying a car. So I wanted to make this helpful article - to help you through your car buying process.
First off, I rarely recommend you buy a brand new car. You'll be upside down from the time you drive off the lot. Why not let someone else take the loss on the car and buy it with a few miles on it!
Here are the steps to Buy a car at the lowest price and interest rate:
1. Check your 3-bureau credit report and scores:
Option 1 (not FICO scores) - http://bitly.com/CheckMyCredit
Option 2 (FICO Scores) - http://www.myfico.com/Products/FICO-S...
2. Find out which Credit Bureau is giving you the highest Credit Scores
Equifax, Experian or Transunion?
3. Search Credit Unions in Your Local Area.
Credit Unions are not for profit and member owned, so they lend at lower rates and will treat you much better than a bank.
**If you are a member of the armed forces, a veteran or you live with someone that is, I HIGHLY recommend you get a Navy Federal Credit Union. They will give you great rates, even if you don't have the best credit.
4. Cross Reference Which Credit Unions Look at Which Credit Score: http://bitly.com/CreditPulls
5. Pick out the Credit Union that ONLY Checks the Credit Score that is the highest for you.
6. Start the Auto Loan Application Process
7. Approved or Denied? Approved = Move forward! Denied = Schedule a consultation with Jesse: https://CreditCEO.com/
8. Buy your car from a wholesale Auto Broker or a Private Party Seller, NOT a Dealership - if possible.
9. Enjoy your GREAT Investment!
You can get the same car, with 10,000 miles for a lot less. So put your pride aside when you decide to buy a car. If you want the lowest interest rate and price, you need to buy a used car and DO NOT go to a dealership. Dealerships have insane markups on their cars and have been known to be unreasonable - especially with female buyers. I recommend you buy your car wholesale and finance the car through a credit union. This way, you will have instant equity in the vehicle and have the lowest payments. I've done it this way numerous times and I'm almost never upside down on my vehicles.
Check out our student, who was able to finance a used BMW at 3% interest. The car is worth $17,000 but she only paid $12,500 using our car buying tips! Video:
So before you buy a car, please read through this article and don't hesitate to reach out to Jesse @CreditCEO for any tips, tricks or advice on buying a car.