Car dealers aren’t so bad. They just work a commission based sales job and only get paid if they sell a car. You’ve got to admit, that’s a tough line of work and especially when they have to waste a lot of time with tire kickers. Nonetheless, they can be very aggressive and getting a deal on a car without feeling like you’re being screwed can be a challenge at times.
One of the first things that you should keep under your hat when you go car shopping, is not to reveal that you have a down payment, if that’s something that you’re planning on. Down payments are not evil, contrary to the thoughts of some people, and they can offer benefits for you. With a down payment, you reduce the amount financed, thus reducing the amount of interest and finance charges that you have to pay. In some cases, you can qualify for a slightly lower interest rate by putting down cash upfront. The reason is that when you reduce the amount financed, the loan is a lower risk for the lender and they don’t mind reducing the interest rate as a benefit to you.
Also, be prepared to walk away from the negotiation table. There is nothing more powerful when it comes to getting a lower price or interest rate than having the attitude that you don’t have to buy the car. Make the dealer earn your business. You may be surprised that the price drops even more when you say that you’re going to have to think about it and come back another day. That salesman and sales manager want to make a sale for that week’s paycheck and they’ll usually take a smaller profit rather than no profit.
Check out some of the reputable lending services on the internet. You may be surprised that they will put you in a better position to negotiate price and get you an easier approval, especially if you have bad credit. There are a few good sources that can provide this for you.