Think about what the car dealer is ultimately trying to do…… Their interest is in selling and moving the car. The finance is a method of trying to get you, the car buyer, in the door to help them win the deal. Their interest is not in whether the finance suits your personal or business structure requirements, so you could end up in a finance structure or loan that is disastrous to you, and costing you a lot more to correct in the long run.
But the Car Dealership finance interest rates are so low?
Yes, but remember very rarely you get something for nothing and those rates do not apply to all car buyers. These rates are used to attract people to the dealerships to ultimately sell them a car, not the finance. Keep in mind these low interest rates usually only apply to:-
– Models that the dealers are trying to move on, i.e. older models or soon to be replaced models
– To premium buyers, or
– When you pay the full recommended retail price for the car
Also those interest rates will not show any extra fees and charges associated with the loan, ie extra brokerage fees
What we recommend
Get your finance sorted first (pre-approval), to ensure you have the right finance structure in place for you. Then you can approach the dealership as a ‘Cash Buyer’ and in a position of strength. With this method you will be able to negotiate the price of the car down further, and as a result will have to finance less of the purchase. In most cases, (if not all) it is cheaper to negotiate the price of the car down further and finance at approximately 7% than it is to pay full price and finance at 0% (that is if you get the 0% in the first place).
But I don’t like Negotiation and Car Dealers
That is okay, we have a relationship with Vehicle Select who are a Car Buying Service for new cars that can negotiate with a couple of dealers to obtain the best price for you. There is no obligation. For example, if you negotiate a better price than they can, they will tell you if you have the best deal. Best of all, their service is FREE! You don’t have to walk into a dealership, they will even deliver your car with a full tank of petrol if you like.
With this in place, you can be rest assured you have the best price for the car and the right finance structure for you.
Where to Start
Contact Us and we will have a quick discussion over the phone on what you wish to do and your budget. We can prepare a quote over the phone and move towards pre-approval as fast as possible. In some cases we won’t even require financials from you.