CAR FINANCE/INSURANCE TIPS
Hopefully at this point you have already shopped around and have your Finance and insurance in order. Times have changed dramatically with insurance companies able to quote online. Geico and Progressive Insurance companies make it easy to get a quote and offer the best rates in the industry.
In addition to helping you with the final steps, this is where if you are not extremely careful, you can really be hit with additional expenses. Car Dealers are trained to try and sell you extras such as emergency road service, rust proofing, extended warranties, and much more. They will even go as far as offering to include the extra cost in your monthly payment. Do not be fooled into purchasing this, unless you really want it. Most of the extras they are trying to sell to you are exaggerated in price and if needed can be bought elsewhere… Always shop around for a better deal.
You will probably hear something like, “I see you’re using your own bank. I bet we can beat their rates.” In addition, if you do not already have insurance, these people will more than likely recommend someone.
NOTE ON FINANCING
Car manufacturers do offer special financing at certain times of the year and on certain models. They may offer an extremely low a zero percent finance rates. It is highly recommended that if you can, take advantage of it. These rates are generally offered to people with a good credit score. If you have less than good credit, one of the best options is Auto Credit Express. They work with people with no or bad credit and are very reasonable with their rates compared to other companies out there and AutoFinder.com highly recommends them.
And finally, there will be a various papers to sign. In some states, the dealership will require you to sign a Power of Attorney authorizing the finance and insurance people to register your vehicle at the DMV for you. Before signing, carefully review each document. Once you put pen to paper, the deal is done and cannot be reversed. Although reading each word in fine print may be difficult and time consuming, always double or triple check the figures before signing. Know your total price and cost of financing so that you can budget your total payment with no surprises.
Here is a list of items that you would be responsible for as well as items you should question before agreeing to pay:
ITEMS TO PAY
- Destination charges
- Sales tax
- License and registration
- Documentation fee within reason ($50 to $100 is reasonable)
- Extended warranties
- Delivery and Handling (D&H)
- Administrative costs
- Security systems installed by the dealer
- Paint or sealant protection packages
- Rust proofing
- Floor cover charges for the dealership
- Fabric protection
- Teflon coating
If all your questions have been answered, the people in finance and insurance will collect your down payment and trade-in papers, if applicable. You will be provided with the owner’s manual, any warranties from the manufacturer, and two sets of keys.
At this point, your sales person will step back into the picture. Before leaving the dealership, carefully inspect your new vehicle to make sure that there are no scratches or dents and that there are no holes or tears in the fabric and everything is perfect.