Smart Financing, What You Need To Know

Shopping for a new car can be a difficult undertaking. There are several concepts that you need to understand, such as cash back deals, incentives and reduced financing rates. Sometimes these terms can mask how much you are actually paying for a new car or new car lease.

Just because you are accepting a new car rebate, does not mean that you can’t negotiate a better deal. This is because a rebate is generally something offered to the consumer from the manufacturer, it isn’t decreasing the dealer’s profits, so they should still have some wiggle room to give you a better deal. Rebates are usually in the form of cash-back offers, which can be used to lower the overall cost of the car, to your wallet.

It’s advisable to always set the maximum price you are willing to pay, first, without taking into account any rebates or financing incentives. Don’t let these perks blind you to the total price of the vehicle, there’s no reason that you should use rebates and incentives to allow the dealer to sell cars for higher prices.

Oftentimes, low financing offers are only available to those with excellent credit and more times than not they can’t be used with any other rebate or incentive offers. If you don’t have good credit, don’t count on securing these low APR offers. Usually low interest rates only apply to shorter loan terms and rise after that, so it’s important to know what the financing limits are for the offer you want to take advantage of.

Financing incentives and rebate deals are generally offered on slower moving models or models that the dealer wants to clear, so they can make room for new inventory. However, make sure that you purchase the car you want to buy, instead of going for the one with the most incentives attached. You should also make sure that you don’t agree to high margin extended service warranties and other add on’s that may not be necessary. Don’t let getting a great rebate or incentive make you sloppy when you’re going through the financing department.

Always bring up the fact that you have a trade-in vehicle after you have negotiated the final purchase price for the vehicle you want to buy. Bringing it up too early can make the dealer less inclined to give you a good deal on a new car. This is because they will have a better vision into what you can afford.