Save On Your Car Loan In Melbourne With These Tips
Getting a new car is exciting, but don’t let the excitement of your new ride get in the way of getting the best deal possible on your car loan in Melbourne. Be prepared for common sales tactics at the dealership, and prepare yourself for smart car buying by using these tips.
8 Smart Car Buying Tips To Save You Money On Your Car Loan In Melbourne
- Make sure you get pre-approved from a financial institution before you go to the dealership.
According to ABC News, dealers may try to confuse you, because a confused shopper is a profitable shopper. ABC News advises you should always get a car loan pre-approval before you go to the dealer. Getting pre-approved for vehicle financing helps to ensure your discussion with the dealer is about the car’s price, rather than monthly payment and interest rate. It’s also a good idea to use a car loan calculator to help you determine how much car you can afford before you apply for a car loan in Melbourne.
- Don’t fall for the, “this is the last one” ploy.
If a sales representative tells you that a certain car is the “last one,” don’t simply jump into buying. Chances are you could get the same vehicle from a nearby dealership, or even have it delivered to a dealership closer to you. Always be kind to the sales representative, but proceed with caution if you feel pressured to buy quick.
- Focus on the end price.
ABC News advises that you should focus on discussing the “out the door price” with the dealer instead of negotiating MSRP or invoice. Also, do not focus on the monthly payment at the dealership. According to Business Insider, focusing on monthly payment could result in you paying much more for your car, because the dealer will extend the term of your auto financing in order to reach the monthly payment you requested. Make sure you always negotiate each part of the transaction by itself. This would include your trade-in.
- Know the value of your trade-in.
If you plan to trade your current car in, make sure you do your research and know how much your car is worth. Resources like Kelly Blue Book are great to help you determine the value of your vehicle. Print out the information you obtain from your research, and bring it to the dealership with you. In addition, it is a good idea to shop your trade-in at multiple dealerships to ensure you are getting the most for your trade-in.
- Always read your contract.
Let’s face it, mistakes happen, but you don’t want mistakes to cost you. Make sure read all paperwork carefully before you sign to eliminate the chance of errors. It’s very important you make sure the numbers you agreed upon match the numbers on your paperwork.
- Always get a vehicle report.
Make sure the vehicle you are purchasing has not been title washed. Always use CarFax or AutoCheck to view the history of vehicle before you buy it. You don’t want to purchase a car that has been salvaged.
- Don’t take possession of a vehicle unless your car loan has been finalized.
Obtaining auto financing before getting to the dealership helps you avoid potential spot delivery scams. Spot delivery scams usually target those with poor credit. With this type of scam, you are lead to believe your financing was approved, so you take the car home. Then, you are called back a few days later and informed that your financing fell through. In these instances, many consumers end up with a higher interest rate through a different lender. It’s always best to have your car financing arranged before visiting the dealership so you know exactly what rate you qualify for. Always make sure your auto financing has been approved before driving the vehicle off the lot.
- Be ready to walk away.
If the deal isn’t right, don’t be afraid to walk away from the dealership. If you have a bad feeling about the deal, trust your gut. If buying a new car isn’t an emergency, don’t make a rash decision. A new car is a major investment, and you want to make sure you get the best deal possible.
What You Should Do When Car Shopping
- Before you apply for a car loan in Melbourne, Florida, do your research, and utilize a car loan calculator so you know how much you can afford before you start shopping.
- Get a car loan pre-approval with Launch CU before you shop. Apply online for your auto financing or call us at 321-456-5441. A Launch CU auto loan has many benefits:
- Great low rates and affordable monthly payments.
- Flexible loan terms to fit your needs.
- Optional GAP protection
- Automatic payment options
- Use these helpful tools