🔑Focus on establishing the out the door price before discussing monthly payments.
📉Higher cash down payments are often used to minimize dealership discounts on the car.
🏦Consider financing options from your credit union to compare rates with dealership financing.
💰Request a breakdown of the costs for add-ons and consider the value before agreeing to them.
📝Ask about prepayment penalties to ensure flexibility in refinancing or paying off the loan early.
How should I respond when asked about my monthly budget?
—Focus on the out the door price and let the salesperson know you're more concerned about the total cost than the monthly payment.
Why do car dealerships ask about cash down payments?
—Dealerships aim to minimize discounts by increasing cash down payments, which ultimately leads to higher profits.
Should I consider financing options from my credit union instead of the dealership?
—Yes, comparing rates from your credit union with dealership financing can help you secure the best terms for your car loan.
How can I assess the value of add-ons offered by the finance manager?
—Request a breakdown of the costs for each add-on and assess their value before agreeing to include them in your financing agreement.
Why is it important to inquire about prepayment penalties?
—Knowing whether prepayment penalties exist allows you to maintain flexibility in refinancing or paying off your car loan early without incurring extra fees.
00:00The video focuses on navigating car dealership sales tactics and provides expert tips and word tracks to handle common situations.
00:48When asked about your monthly budget, shift the focus to the out the door price instead, demonstrating your concern about the total cost rather than the monthly payment.
02:16Car dealerships often ask about cash down payments to minimize discounts and increase profits. Be aware of this tactic during negotiations.
05:00Considering financing options from your credit union can help you compare rates and find the best terms for your car loan.
06:36When faced with add-ons offered by the finance manager, request a breakdown of costs and assess the value of each option before agreeing to include them in your financing agreement.
08:02Inquire about prepayment penalties to ensure flexibility in refinancing or paying off your car loan early without additional fees.
