Car Buying Mistakes – Monthly Payments
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Negotiating Based Upon Monthly Payments...
If I had to definitively say what the biggest mistake is made by
car buyers, it would probably be buying a car based upon liking the
monthly payments you are being presented with.
If not the most financially imprudent mistake, certainly the most
frequent car buying mistake made.
Additionally, negotiating a car deal based on the car dealer
getting you to the monthly payments you like... really isn't
negotiating or driving a hard bargain on your part at all... if
fact, it's quite the opposite.
Automobile sales people salivate over customers that “just want
to be able to get to a certain monthly payment”. If you’re one of
these types of buyers, you are going to lose and probably big
(review my article on
buying a car on monthly payments
scenario).
Buying your car based upon a monthly payment figure just about
gives the car dealer a blank slate to work you with.
Don’t be one of those people.
Remember, mathematically any amount (selling price) divided by a
large enough number (length of your loan) will get you a small
enough number (your payments) that you will be comfortable with. Now
throw in your trade in, dealer incentives, customer rebates into the
mix and you’ll soon not only be confused, but you’ll be paying way
too much.
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I'm not saying that you don't need to have a monthly
payment figure in mind that will stay within your monthly budget all
of us do. Of course you do to. It just has to stay within your mind,
not blathered out all over the car lot in front of the sales person.
Know your numbers. Get your financing pre-arranged with
RoadLoans or
Get your auto loan now - free 60 second application.
Calculate your
monthly payments
ahead of time or use our handy
monthly payment calculator cheat sheet
and know bottom line amount financed what
you can afford.
Don’t discuss your desire to buy the car in terms of monthly
payments… never.
If and when you leave the dealership with your new car, your car
salesman, nor the sales manager, nor the finance manager, not anyone
should know or not whether they met your monthly payment goals.
Car buying based on a monthly payment is a trap that many buyers
fall into. No matter how much you want the car don’t rationalize
yourself into buying on a monthly payment and certainly don’t tell
the salesperson “if you can get me to this monthly payment then I’ll
buy”….
And don’t answer the question when the salesperson asks you “if
we can get you to this monthly payment, do we have a deal?” Turn the
conversation off the monthly payment and back onto the selling price
of their car.
Next Mistake Your
Trade-in
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