Finding decent car loan leads can be tricky for many new and used car buyers, and in many cases, dealerships can trap you into thinking that the deal they’re offering is better than it actually is. Approximately 43% of car buyers finance their vehicles, and many are paying for their mistakes, quite literally. To make sure that you make the right decision, avoid the following common auto loan mistakes:
- Don’t negotiate the monthly payment. Instead, negotiate the purchase price. Buying a car based on how much the monthly payments will be can trap the unwary buyer into a sketchy deal. While you should know how much you can afford to pay per month on the vehicle, you shouldn’t have to tell that to the dealer or salesman. Once they know that you can afford monthly payments, you have no chance at buying the car at a lower price.Monthly car loan estimates can help the dealer decide how they can hide interest rates and add-ons. By negotiating each cost component separately, you can avoid trick fees.
- Don’t let the dealer define your creditworthiness. Your credit score determines the interest rate that you will be charged on your auto loan. The higher your credit score, the better your rate will be.Most car buyers have no idea what their credit scores are before they step foot into the dealership. Not only that, but most people assume that their credit scores are lower than they really are, which makes it easy for salespeople to tell them whatever they want. Know your credit score before stepping foot in the dealership and applying for a loan.
- Don’t finance the add-ons; you can purchase these separately. Saying no to extended warranties, credit life insurance, and the like is your best bet to avoid these unnecessary costs, which often exist to provide extra profits to the dealerships through higher interest rates.Most dealers try to give these add-ons official names that sound really important. They know that your guard is down and you’re trying to make the best decision. This is why it’s valuable to evaluate all of your options beforehand.
At CyberLead, we specialize in providing high quality new, used, and subprime auto finance leads. We can provide the best advice and car loan leads to ensure that your business always has a steady stream of new customers.