Buying a new or used car is stressful. It’s an expensive purchase that you have to research and be confident about. When you add in the fact that you have to negotiate with a salesperson over price and financing, it can become overwhelming.
One of the best ways to make your dealership experience smoother is to walk in with your financing already started. Here are four reasons why.
Gives You a Stronger Negotiating Position
Typically when you go to the dealership, you pick out a car, and then discuss financing. Salespeople usually start by asking what you want to pay each month — a classic sales tactic. When you do that, it’s easy to get stuck with a long term and a high rate because you’re discussing the monthly payment instead of the vehicle price.
Instead, you can say you already have your financing and you only want to negotiate the price of the vehicle itself. You’ll be treated like a cash buyer that can walk away at any time, giving you the power.
Helps You Set and Stay Within Your Budget
If you’re already pre-qualified for a loan, you know your budget and can stick to it. After online research, you likely know the type and estimated price of the vehicle you want before you go to the dealership. With that information, you can get pre-qualified for a loan and go to the dealership with a budget already in place.
If you go in with no financing, you could keep monthly payments within your budget, but you may get a longer term and higher rate, meaning you’ll be paying more over time.
Makes Your Dealership Experience Easier
Like we mentioned above, with your pre-qualification in place, you only have to negotiate over the vehicle price. That will make your whole experience smoother because you don’t have to spend time at the dealership setting up financing and haggling over rates, terms, and payments. It will save you time, money, and hassle.
Gives You More Confidence
Between the negotiations, lingo you don’t understand, and multiple salespeople at once, a car dealership can be an intimidating place. Wouldn’t it be nice to go in knowing you’re going to get a great deal on the car you want? That’s why you need to get pre-qualified first.
Car buying doesn’t have to be difficult. We’re here to help you with great rates and rewards for members who open new auto loans. If you want to learn more about what we offer, check out our Auto Loans page today.