Four Car Dealership Finance Traps to Watch Out For
Author: Diego DeoThe 2017 Ray Morgan Image of Professions Survey determined that Australian’s consider “car salesman” to be the least trustworthy profession. This list consisted of 30 professions, including federal and state politicians, lawyers and talk-back radio announcers.
The lack of trust Australians have with car salesmen stems from the fact that when people complete a transaction with a dealership, they often leave feeling short-changed or taken advantage of. A car salesman's job, of course, is to make as much money from you as possible, buy discounting the purchase price of the car as little as possible. Purchasing a vehicle should be an exciting experience for an individual or a family, not one filled with uncertainty or regret.
It is important to us that you don’t share in this negative experience, so during your next vehicle purchase, be on the lookout for the following car dealership finance traps:
The Business Manager
When you visit the Business Manager at a car dealership, always keep in mind that the entire experience is designed to make as much money from you as possible. Ensure you come into this interaction having done all of your research so you aren’t agreeing to something that isn’t in your best interest.
Lack Of Lenders
Dealerships are not your advocates, and will not try to find you the best deal on the market. They often only have access to one or two lenders, which can greatly impact the interest rate you are offered. A certified car finance broker will have access to dozens upon dozens of lenders, and they will work with you to find you the best deal you are eligible for.
The Repayment Trap
The dealership will not have your best interest at heart, and will determine how much money you’re willing to pay and trap you with a repayment plan that you’ve said you’re comfortable with. They may not take your personal circumstances into consideration, and this can often leave you in a precarious financial situation.
Insurances, Warranties & Add-Ons
It is not uncommon for a dealership to include insurances and warranties as a part of the car loan repayment. These may not be insurances that you need and will needlessly drive up your monthly repayment fees. You may also find yourself in a room with another member of the dealership team who will put the fear of god in you, and strongly suggest you purchase extras such as tinted windows, paint protection and accidental damage protection. Stand your ground and do not feel obligated to purchase these costly and often unnecessary extras!
Car dealership finance traps can be sidestepped, or avoided altogether, with the assistance of a car finance broker. As mentioned above, a car finance broker will have access to numerous lenders, and will find you the best car loan deal you can get on the market. They will take your circumstances into consideration, and never leave you in a financial position you aren’t ready for.
If you’re about to visit a dealership and would like some more personalised advice, or would like to enlist the assistance of a car finance broker, the team at Auto Car Loans are here to help. Give us a call on 1300 301 051 or reach out at any time at firstname.lastname@example.org to get started.
For more advice or information, get in touch with us today
DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.