Test Driving, Financing, Negotiating, Interest Rates, Points of Purchase to Remember, F&I office

At the Dealership

Items to consider at the dealership

1. How to Test Drive a Car?

Make an appointment to test-drive the cars you are considering. This is a chance to evaluate the dealership and the salesperson, too. Take your time, bring a friend. See how the vehicle handles. Turn the radio down, you want to hear the engine, the tires, the suspension. Feel how it handles on a freeway or how it corners on city streets. Practice parking in smaller spaces.

2. Low Interest Rates

Do not be swayed by low-interest-rate deals. These low-rate deals typically require shorter terms - which means higher payments. Additionally, you generally have the option to take either the lower rate or a cash rebate. By taking the cash rebate and using it as down payment, you will be able to lower the amount you'll need to borrow and this will result in your having a lower payment. While the lower interest rate can also lower your monthly payments, the shorter term will typically mean higher payments. Unless the rate is low, i.e., 1.9% or 0.9% and you can afford the payments on a shorter term, you may be better off taking the rebate as cash down payment.

3. Negotiations

Remember, competition always gives you the best price, online and offline. Never buy under time pressure. Do not act like an impulse buyer. Get everything in writing! Once you make an offer, stick to it, and be prepared to leave if you have to. Negotiate from dealer cost upward, not from MSRP downward.

Once you have the dealer's best sales price in writing, consider whether you should get a quote from another dealer. If you are positive that you have gotten the deal you want, then talk rebates, down payment and discuss your trade-in. If there is a factory rebate on your new car, the incentive is from the manufacturer, not the dealer. This rebate is an additional savings on your car, and should not be a part of your negotiations. The same holds true for whatever cash down payment you may have.

4. The F&I Office

You will move to the Finance and Insurance (F&I) office to sign contracts. Review everything carefully. Research before you buy an extended warranty or other extras at the dealership. Independent companies can sometimes offer very competitive deals. Make sure you check the contract and disclosures before signing. Do not sign anything that you do not fully understand. Check all the numbers. Check your new vehicle for scratches and dents before taking delivery of it. Document any damage or missing accessories.

Be sure to ask your Loan Specialist about our GAP and Warranty products - we may be able to offer you the same service the dealer is offering for less money!

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