"Let's Make A Deal"
We all know the routine. You visit a dealership or used car lot just to look around. You want to explore your options, maybe narrow down some ideas you’ve been having about what your next vehicle should be. Before you know it, you’re test-driving something quite different than what you had in mind, but... it feels so good!
Then come the heartfelt inquiries from the salesperson as to what they could do or find in their inventory to make you happy. They seem like such nice people – and many of them are. But they have to pay their bills the same way you have to pay yours, and that means either finding something that genuinely matches what you want or changing what you want and are prepared to purchase.
It’s not evil – it’s just salesmanship. But it’s also not primarily about looking out for you. It’s not supposed to be. You’re on different teams. If you’re able to come to terms on a deal that’s a win-win, that’s great. It happens. But if not, they still want to win – and so do you. That’s why you need to go into the process prepared with information as well as resolve. It’s why it’s essential that you know your options and what to look for as you shop for that new or used car or truck.
The same thing applies when it’s time to talk about financing. Dealer financing may be a legitimate option. Manufacturers sometimes offer amazing promotions in order to move inventory – rates and terms impossible for traditional lenders because the manufacturer is making their profits on the sale, not the financing, Other times local dealerships craft tempting terms through third-party lenders to spark sales.
There’s nothing inherently wrong with the idea. Sometimes the in house financing car lot process works to your advantage. Other times, however, dealers are looking to pad their profits through creative – or even deceptive – financing arrangements. We don’t begrudge anyone their right to make a fair profit on their products and service. What we care about far more, however, is your ability to make fully informed decisions when it’s time to buy.