1. Do your budget and know how much you can afford to spend each month before going to a dealership.
The Business Managers have a wealth of knowledge and can often show you a more advantageous way of financing your car as well as advise you of what finance packages are available through dealerships.
2. Understand the difference between a headline interest rate and effective rate of interest.
The headline interest rate is the rate quoted with no fees, and charges and is often what most financial institutes will advertise (for example banks and major finance companies).
When speaking to a Business Manager and ask for a breakdown of all the costs associated with the loan (e.g. establishment fee, early termination fees, monthly fees).
3. After having completed your research you will have the equal, if not more knowledge than any other purchaser. Never forget that you are the customer and it is your business they want, therefore substandard service is just not acceptable.
4. When comparing dealer finance make sure you are comparing like for like (for example: amount borrowed, length of contract, deposit, interest rate, total amount payable).
The total amount payable gives you the true picture of the total cost of the vehicle, but for comparison purposes make sure all the parameters are the same.
5. Always give the dealership an opportunity to revise their quote. Don’t discount the convenience of having your sales, service, finance and insurance needs all under the same roof. This will make future enquiries or issues much easier to deal with.
Good luck and remember contact Borcherding Buick GMC for any questions during your car buying process!
Sincerely,
The Borcherding Team
