So you’re wondering about buying a new car? You’re also aware of your finances. Don’t worry; there are plenty of ways to save on your next car. Just exactly how many ways is a tricky one though.
The car dealership doesn’t want you to know anything about finances and their prices or much less anything that falls under that umbrella. What you should know is this: the dealership doesn’t cheat, it’s the dealer itself. Interesting huh?
See it works like this, you end up trading in the clunker and they give you an excessive amount for it that you never expected. You also pay this really cheap payment for 72 months, right? Think it through though with math. The formula for simple interest is: Interest=Part*Rate*Time (I=prt).
Let’s work this problem out:
$20,000=cost of car, 6% interest (per say), and 72 Months (6 years)
20,000*0.20*6=$7,200 extra in cash your paying.
Combine the two, and that’s how much you’re paying. ($27,200) If it’s over 6 years, you need to divide this by 6 (27,200/6=4,533.33) and then divide that by 12. (12 Months; 4,533.33/12=377.78) This is $377.78 per month you owe. Now if you sit down and tally it all up at the dealership, then make sure all the numbers are right because if something does seem suspicious then say something because any extra money you are paying them, you’re giving it to them straight out of pocket and under the table.
Anyhow, the best way to lower your payment and save you from that treacherous bill is to trade in what you have. There are a couple of tricks you can pull from your sleeve to up the actual value seen by the dealership by the thousands! For example, fill it up and put some engine cleaner in it. Paying that extra price can really save you. If you recently had to “Fix a Flat” then it may be time to throw out that fixed flat and get new ones. Tires are relatively cheap, but go with the new stuff anyway. Another way to up the value is to send it to the car wash and either let the pros do it, or buy the best option and all the upgrades. Make it shine! After that, do a thorough interior clean and air-freshen it up! Also be sure to remove most, if not all of your valuables so it’s ready. Also any cosmetic repairs that might be in order will be helpful to the fullest!
A good idea before you actually go to the dealership is to probably build up a good solid thousand to three thousand. It helps lower your note by all means. Any way to save money there is definitely a life saver from the “car note.” Other than that you should be good. Maybe your note will be under $300 if they really like you!