Informative video outlining information that Dealerships keep hidden from the consumer. Enjoy!
Key Points in The Video:
Always negotiate for the best price and interest rate
- You are often "sold" interest rates.
I had a client come in, and they were offered a 16% interest rate at that time because
they’re had “okay” credit, not really “bad”, but just “okay” credit. When I went into the back
office to speak with my sales manager, what I found out was that the bank had actually
offered that client an 11% interest rate, and that the dealership had actually sold the
client the higher rate. Had that client negotiated their interest rate down, they would have
been able to pay much less for the car than they were asked.
- You are asked to make a down payment.
That down payment had nothing to do with reducing interest rate, because as I just stated,
that interest rate that they were offered at 16% was never going to be reduced to the 11%.
So, all-in-all, I’m telling you, always negotiate. Always go to the dealership under the best
conditions possible. Of course, there are times when you have to go into a dealership, and
you will need to purchase a car because situations just happen. We all understand that.
However, if you have the opportunity to plan for a purchase, a large purchase, like a home
or a car, it is best that you get your credit lined up in order for you to get the best
opportunity at negotiating great rates as well as getting cash-back on cars.
Cash-back on cars
And as you know, cashback on cars has to do with the rebate.
Applies not only to high-end expensive luxury cars, but on almost
every car you purchaseSometimes, but often not the case, rebates are applicable only
when you’re military or you’re turning in a car of similar brand.Many times, that rebate can go back to you with or without you
being a first-time, second-time, third-time owner of that brand and
style of vehicle.
- Be prepared to go there and negotiate. Be prepared to get up and
walk out if necessary. Do not sit there. If you feel you have done
your research, you have great credit, you want the best deal, and
they’re not offering that deal to you, be prepared to get up and
walk away.
Many times we don’t want to walk away because they have us so enticed by the car that
we’re willing to sit there and take whatever it is that they give us. Just understand that you
have the power to negotiate. Interest rates, terms and conditions, as well as get cash back
in your pocket by activating the rebate. Instead of going back to the dealership, it goes
directly to you as the cash check in the mail.
Reduce your actual loan payments
So now that you were able to negotiate an amazing rate for your car, or able to get cash
back on your deal, let’s talk about reducing how much you’re going to pay on your overall
loan. The way to do that, there are two different ways that work simultaneously, working
together.
- Split your payments up into two payments every month
You’re going to make one payment on the due date, but prior to the due date, you’re going
to make half of the payment in the middle of the month. The reason for this is because
you’re going to be making this payment is it’s going to help reduce the amount you’re
going to pay overall on the life of the loan.
- Round up your split payments.
The second part of this process is called rounding up. Remember that I told you that you’re
going to take your monthly payment and split it into two payments. So if your payment is,
say, $500 a month for your car loan, you’re going to pay $250 each time. Round that
payment up to $270 if possible, and continue to do that during that life of the loan, as
well as split the payments. You’ll have your car paid off in little to no time.
Financing isn’t for everyone. But if you are going to play the game, you got to know the
rules. I hope this was informative and it helped you out in some shape, form, or fashion.
P.S. In the link below is the car rebates website. That alone is worth an upvote IMHO. Just imagine if you had a business with credit established on it and use this information.
Another tip: If you do have a business and want to establish credit on that business its imperative that you do because even though you have to personal guarantor on loans, those business credit cards/loans do not and I repeat do not show up on your personal credit so you can max the credit cards for business investments like say: Steemit :-)...Yes you will have inquires but their are a way to have those removed in 45 days. Wash, rinse, & repeat. I should do an article on this + provide the info for inquiry removal. Let me know your thoughts through upvotes/replies.
P.P.S. Just imagine a world where you can buy a car through the manufacturer direct at 1 of their distribution center with no dealership/middleman involved through the blockchain. What A Time To Be Alive! I love Steemit & The Blockchain :-)! Just Thinking Out Loud