How To Get The Best Car Loans In Auckland
The lengthy process of finding the right type of car for you is finally over. Now you need to get the finances in order for the new car. You might not have the cash available to you at this moment in time to pay off the car outright and therefore need to get a car loan in Christchurch or a personal loan if you are in Auckland. When trying to get a car loan, it is vital that you keep a few things in mind when negotiating a deal.
Negotiate the price
While it sounds like common sense, most people simply accept the first price that they are offered and do not try and negotiate. They are leaving a lot of money on the table by doing this. When a car salesman is enquiring as to how much per month you would like to pay, they are actually planning to set the price of the car in accordance to whatever maximum monthly amount you are willing to pay. This will make you pay a lot more for your car than you have to. Always ensure that you do not negotiate the car payments, negotiate the price first.
Take as short a loan term as possible
There are many tricks and products that dealers will use in order to reduce the monthly payment sum to make the price look more attractive. They normally achieve this by simply lengthening the period of payments which in turn decreases the average monthly payment. Some people enter loan repayment agreements for seven years in length which is simply crazy as a car depreciates in value every year. You should aim to get a loan term of four years or less. Do not accept a deal of more than five years.
Don’t take the extras bait
Loan managers will always try and upsell you on all types of extra add-ons. There are different types of insurance, fabric protections, anti-rusting, paint protection, car alarms and extended warranties that they will offer you. Some of these may be beneficial but the dealer will include a huge mark-up to them. This is where they make their profits. You can always get these add-ons for a much cheaper price at an independent garage in the future.
The experience of buying a new car can be exhilarating. This feeling can often cloud your judgement when you are negotiating. Always be prepared to walk away from a deal if the dealer is unwilling to compromise or negotiate.
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