Car dealer financing

You're in the "Finance and Insurance" office setting up your financing with the business manager. Your guard is down now that the deal is done, and you're really excited about driving home that new car . Make sure you're not so euphoric you forget to use good judgement for things like :

Interest rate, term of the loan, down payment, rebates, and monthly payments:

Remember you can negotiate that interest rate. Make sure every element is spelled out on your contract and is correct . Don't sign until you're satisfied that all of the numbers have been filled out correctly . Also, make sure the interst rate you are agreeing to doesn't change during the term of the loan, and ask about repayment penalities. Remember that the bottom line is how much you're paying for the car, not what your monthly payment is . You may be getting a really low monthly payment, but how long will you be paying it ? Almost any repayment level can be reached if the loan term is long enough . Make sure there is no "subject to financing" or "subject to approval" statement on the contact .

Extended warranties:

The business manager will always offer you the extended warranty on your new car . Some experts are of the opinion that the warranties that now come with new cars are comprehensive enough that you don''t really need the extended warranty . If you feel you do need it, explore other sources for those warranties so you can compare . You will be able to get a better price (usually half of what the dealer charges), and sometiems even a more comprehesive warranty, by buying one through online sources or through some banks or credit unions.

Rust protection, undercoating, fabric protection and paint protectin:

The rust protection, as well as the undercoating, is usually really applied at the factory, so there is no need for you to have it done again (and pay for it twice). Check the car's factory warranty to make sure it has Rust Perforation Warranty .

Alarm systems and window etching:

Sure, you want to protect your car from car thieves, but with the amount of money most dealerships charge for the system you could hire a guard to watch your car. You can get an alarm system installed at most reputable auto shops that's just as good as the one the dealer would install .

Insurance:

You will almost always be offered life and disability insurance while you're financing at the dealership (often at banks and credit unions, too). Do you need this insurance? Maybe. The idea is to protect your investment in the event that is not requirement that you get it even if the business manager tries to imply that there is . You should also be on the lookout for this insurance being added without your knowledge . You can get much better rates elsewhere for this type of insuracne, and banks and credit unions sometimes include it free of charge if you finance your car with them .