Many consumers are unaware that they have options when it comes to financing a new car. But is it smarter to finance through the bank, or right through the dealership?
As host of the Money Minute radio show, RP Funding CEO Robert Palmer uses his expertise in the financial and real estate industries to answer your questions and offer valuable advice on money saving tips and personal finance goals. From financing a new car, to interest rates and credit, Robert Palmer helps you with it in the Money Minute.
Don’t Be Fooled
When you’re ready to buy a new car, don’t be fooled into believing you must finance your vehicle through the dealership. You have to follow rule No. 1 to see what other sellers will offer you. And when making a large purchase, rule No. 1 is always shop around.
You Better Shop Around
Even if you think you are getting a good deal within your budget, take the time to shop around. Look at lots of different Cars for sale to try and find the cheapest price. Talk to your local bank or credit union and see what they can offer you. Even if their interest rate is just a few decimal points less than what the dealership offers, you can still save hundreds of dollars in the long run.
The dealership may have the best financing but you won’t know until you check with somebody else. Your dealership may have 2.9 or 3.9 percent financing. That may sound great, but right now, interest rates are really, really low. If you already own a vehicle, you might also be able to get a trade in deal. There is still value in a Used GMC Yukon and many other pre-owned vehicles you might want to trade in, so it pays to investigate trade in deals.
Do Your Homework when Financing a New Car
So, you’ve got to do some research, make an informed decision, and not let anyone else make a financial decision for you. When you just blindly trust the car dealership to find you the best financing, you lose your power as a consumer. They may not recommend the best financing option for you, but the best financing for them! Because they can make money by marking up the interest rates on your financing.
Be a Financial Ninja
Ask for a final price breakdown from each of the dealers you visit, watch out for hidden fees, and shop around not only for the best car, but for the best financing, as well.
You could look into leasing a vehicle through a company like Intelligent Car Leasing.