Your payments are going to be HOW MUCH? For that? Are you nuts?
Your payments are how much? On that thing? Are you nuts? Those words have surely been repeated thousands of time since the invention of automotive financing, and for the uninformed will be repeated over and over for centuries to come! Does it have to be said? Can anyone do anything about the payment amount on a vehicle loan? Are we stuck at the “at their mercy” desk (that would be the dealership Finance Office Desk) with no say in how OUR money is spent? I think not! A little homework, a little research, a little investigation may well turn things in your favor. Keep in mind, the employees of a retail vehicle business are paid to make money, and most (sometimes all) are paid a commission, a percentage of your money, that they separate you from. That in itself is neither good nor bad. What is questionable is the amount you are separated from. In many cases a vehicle is financed at the dealership “buy rate” (what the financing institution is charging you to use their money) and there is no profit to the dealership. That’s good! However, you and your credit union, or your bank, or any other source of vehicle financing may well have been better, saving you money on your loan and creating lower monthly payments. Using a 60 month example of 4% on a $25,000.00 loan your payment would be $460.41. At 11% your payment would be $543.56, an additional $83.15 per month, a total of $4989.00 over the term of the loan. Knowing your credit score and shopping interest rates prior to doing business might just save you that extra money. The truth is this; if you have no idea what interest rate is available to you, you have no idea what to pay. Dealers will typically mark up the interest rate! Here's an example: The dealer obtains financing for you for $20,000.00 at the rate of 8% from a lender. The dealer then writes your contract at 9.5%, raising your payment from $405.00 to $420.00, an additional $15.00 a month and an additional $900.00 in interest over the term of the contract. BUT, what if you had obtained your credit report, shopped your loan, and obtained 7% financing? Your payment would be only $387.00 a month instead of $405.00 (saves you $1080.00) or $420.00 (saves you $1980.00). You would know what you were doing instead of relying on your gut level feeling due to lack of knowledge. Protect yourself, it's your money! Chuck Norlin, a record setting automotive retail sales industry expert in all aspects of buying and selling; a graduate of U of California; General Motors University; Chrysler Customer 1; the Oldsmobile Aurora Academy; Cadillac Customer Care; and many other major educational and motivational projects; ultimately teaching sales techniques specifically dedicated for customer satisfaction is a 41 year veteran of negotiating the outcome of life events. His motto: "Expect Results-Get Them Now-Your Way!" Buyers Be Aware, Chuck Norlin 30 years/thousands of car deals http://www.thebestdealofyourlife.com
Chuck Norlin (http://www.thebestdealofyourlife.com) is a 41 year veteran of negotiating the outcome of life events. His motto: "Expect Results-Get Them Now-Your Way!" is the result of learning the intricacies of the human mind while earning his degree in Child Development and Social Psychology, and then negotiating life results over the next 30 years in the retail automotive business with proven results.
A retired record setting automotive retail sales industry expert in all aspects of buying and selling, a graduate of General Motors University, Chrysler Customer 1, the Oldsmobile Aurora Academy, Cadillac Customer Care, and many other major educational and motivational projects, ultimately teaching sales techniques specifically dedicated to customer satisfaction.
His newest project is the marketing and distribution of his #1 BestSeller "thebestdealofyourlife", a complete consumer eWorkBook designed specifically for the automotive vehicle buyer to use in creating a hassle free, empowered, money saving environment in which to purchase their next vehicle.
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