Blog Post by chrisoutsidefinancialcom - 09/06/2017 04:02:58pm
Don’t leave yourself vulnerable: you need to understand your options and arrange your car loan before you go to the dealership. The right car loan could save you over $1,000 in fees and markups. (Curious about markups? Check out our Outside Financial Mark-up Index to learn more).
Do your research. Understand your options. Understand which protection products make sense for you, and which ones are a waste of your money. Then make a good decision, on your time, in your place. Most importantly, arrange your car loan before you go to the dealership.
When you walk into the dealership with your car loan in hand, you walk in with the power of a cash buyer. That’s the only way to be confident you got the financing that’s right for you. And with interest rates rising, getting the right auto loan is more important than ever.
The back office of an auto dealership is the wrong place to make important and complicated financial decisions. By that point in the car buying process, you’re low on patience, fresh air, blood sugar, time, information, choices, and wireless connection… Yet this is how most people arrange their car loans. It’s like showing up to the grocery store and asking the cashier how you’re going to pay for your milk – only the stakes are much higher.
When we started Outside Financial, we asked a lot of car buyers about their experiences. And we mean a lot: over 600 people, spread across the U.S. Melissa’s story stood out, because it reminds us of why a great car deal must start with a great car loan.
Getting burned on a bad loan can easily wipe out the savings you earn negotiating the purchase price of your car.
And Melissa really did work to get the best deal on her dream car: a Jeep Grand Cherokee. She drove across state lines to save several thousand dollars on the purchase price and taxes.
That’s great. But she went into the dealer’s back office without arranging her financing. She remembered that she was offered a bunch of add-on products. “I would never buy any of that from the dealer,” she said.
$2,500 is not “just $35 per month”… it’s $2,500!
|Melissa’s added payment||$35|
|Melissa’s loan term in months||x||72|
|The Total Markup||=||$2,520|
“I just got caught up in the rush,” Melissa told us. It happened at the very end, when she was worn down in the dealer’s back office.
But here’s the thing – Melissa is not alone. Consumer Reports puts it well: “If you don’t have financing in place when you visit the dealership to buy, you’re leaving yourself vulnerable.”
Don’t leave yourself vulnerable. Arrange Outside financing before you go to the dealership to save yourself time, hassle, and $1,000 or more.