Navy Federal | MakingCents: Getting a Deal at the Dealership

0% interest may send you racing to the
car dealer but don’t let dealer financing steer you in the wrong
direction here are some tips you should follow order a free copy of your credit
report and correct any errors months before shopping know the value of the car
you want look it up through trusty sources like NADA Guides dot com or this ensured he won’t be more than what the car is worth shop
around for auto financing and get pre-approved for your loan pre approval
will allow you to focus your negotiations on the cost of the car not
on financing it also shows the dealership you’re qualified buyer can
pay in full the same day use online tools such as Navy Federal’s auto buying
program to locate a reputable dealership most of us base our car buying decisions
on monthly payments but be sure to keep the negotiations focused on the total
price of the car including fees this will keep you from falling victim to a
tactic that promises a low monthly payment but comes with a very long loan
term meaning you’ll be paying much more in the long run before agreeing to
extras the dealer tries to include like service contracts credit insurance or
extended warranties the Center for Responsible Lending suggest you consider
each option carefully these are required and can add up quickly if you’ve been
pre-approved you don’t need to tell the dealership the amount they may work to
sell you the car at a price you are pre-approved for when you could actually
get it for less if you need to give the dealer a deposit to hold the car make
sure you know whether you’ll get the money back if you change your mind get this in writing remember this
deposit is different from a down payment be wary of ads that promise loans for
people with bad credit these deals often require higher down
payment or have a very high interest rate make sure you’re aware of any
penalties some lenders will even charge you for paying off your loan early if
you’re purchasing a used car run a vehicle history to check for things like
title problems odometer readings accidents and flood damage multiple owners over a short
period could put the brakes on your enthusiasm it’s a lot to think about but
taking the time to review these tips will help you get the most mileage out
of your deal

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