This week on "Manage Your Credit for Life", Michael Augustus and Joseph Lucido from Consultants and Business Education, interviewed an insider from a local Auto dealership who agreed to answer some important questions about the car buying process. He will also give us the perspective of the sales team and the finance department which are the two main players when buying a new car from a dealership.
Michael started off by asking "What can consumers do to change the car buying experience into a more pleasant and exciting one?"
"I see every day how emotional it can be for people to buy a car, says the insider "It can also be exhausting and stressful and in the end you don't really know if you got a good deal or not."
In order to change that, the first and most important thing you should do is understand your credit reports. Why? Because it's the number one thing that affects the car buying experience. Having this critical information from the beginning puts YOU in the drivers' seat.
Our expert adds that, "If you walk in to buy a car and didn't run your credit report or even your scores, the very first thing the finance department will do is run it for you. If you go to several dealerships and they all check your credit, it will actually have a negative effect on your credit score!"
Joseph continues with a question, "Can you explain to everyone why knowing your credit score before you begin car shopping is so important?"
"When you run your own credit you are in a better negotiating position." In many cases dealerships go over your report with you as a tactic to intimidate you. In order to charge you the highest possible interest rate they focus on any late payment or any information that reflects negatively on you. You can improve your scores by having a professional help you get control of your credit report before you walk in to a showroom.
"Our listeners want to know, what is the best way to educate them selves about what kind of loans and interest rates there are?"
"The internet is a fantastic way to do your research!" At least 46% of car buyers don't bother to compare prices or interest rates. You can find the prices of cars all around your area or anywhere in the country. Compare Insurance Companies and Banks too! If you are planning on trading in your current vehicle, you can find out how much your trade in is worth by checking the Blue Book value.
The third thing you should do before heading off to buy a car, is to apply for credit from a credit union or local bank. Community banks can also be competitive on interest rates. If you get pre-approved you can try to get the dealership to beat the rate you walked in with!
Our insider says "The sales team loves it when a customer comes in with a pre-approval!" The finance department is usually not so happy because they have to address the whole deal in a different way. If the consumer comes in strong and is prepared then they control the deal.
Take the stress out of buying a car. Have the proper financial tools and information in hand before you head out to a dealership. Definitely use the internet to shop for cars, reputable dealerships, the lowest rates and alternate lenders. Get your financing pre approved, get the best deal! Ask a lot of questions and listen carefully to the answers. Happy Hunting!
If you are interested in learning more about Managing Your Credit for Life Call Michael Augustus or Joseph Lucido
Consultants and Business Education
888-216-3692
Where the call is FREE And The Information Is PRICELESS!
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