Have you recently bought a car and are starting to regret that purchase? Cars are a very expensive thing to buy and while they are almost essential for travel, they might not be the most budget friendly choice you can make.
Companies know this and offer a variety of different plans for you to pay for this car over a larger period of time. Unfortunately, these companies are not doing this out of the kindness of their heart, but instead are doing this to line your pockets. Long term plans are created specifically to give them more money than the original value of the car, so while you are able to make payments regularly and more easily afford it, you will end up paying much more for the car than originally intended. Are you able to keep up with your car payments, though? Falling behind on car payments can become a huge problem and can bring about some disastrous situations in the future. All of these things start at the dealership and with the car salesmen you deal with. Car salesmen are known for having a shady reputation, so you need to go into your meetings ready to get a deal that is friendly for your lifestyle. Here are some tips to prevent yourself from getting screwed over by a car salesman:
Cancel Your Financing if Payments Are not Possible
Are you having trouble keeping up the financing payments required for your car? Have you made more than half the financing payments? The Car salesmen will not tell you this, but you are allowed to cancel your financial plan, personal contract purchase, or hire purchase. Don’t let yourself build up a long list of debt trying to keep this car. If you can see yourself getting into problems financially, don’t be afraid to exercise your right to cancel these plans and right the ship. If this is a serious consideration, you should know that by doing this early, you can ensure that you do not fall too far into debt. This will leave you without a vehicle, but it will stop your wallet from bleeding. The other option regarding car financing, is cancelling it because you would like to sell your car. Once again, if you have paid at least half of the car financing plan, you can pay the rest of it off immediately to end the plan. Car salesmen do not like you doing this, however, as they do not earn as much money as they would if you took the whole amount of time, and therefore, will not tell you about this option. This option allows you to gain full ownership of the car instantly, and from there sell it to someone else if that is what you are aiming to do. Don’t get yourself locked into a long-term financing deal, there are options available for you should you need them. Debt and car payments should not be controlling your life. Prevent yourself from getting screwed over by taking a look into your financing options.
Negotiate an Owner Friendly Deal
Dealing with car salesmen is a lot like haggling. There are many different payment plans, features, and options available for you as the buyer. A car salesman will most likely want to put you on a plan that benefits their company rather than you. Therefore, when looking into buying a car, it is strongly recommended that you research the payment plan options independently, so you can make a choice based on your lifestyle. These ‘recommendations’ they make, are not so much recommendations to help you out, but recommendations to earn them extra money at their job. If you have the money and are able to make large frequent payments, do not let them convince you into taking a longer term deal with smaller payments. This will draw out the length of the contract, causing the company to make more money via interest payments. A rule of thumb to remember is, the longer the contract, the more money you will be paying, while the shorter contract, the more money you will be saving. If a longer-term plan is something you need, try to see if you can bargain with them to get a lower interest rate. Most companies are flexible should you stand your ground and present your case. Don’t get stuck in a bad deal, get yourself one that works for you.
The last thing you want to worry about when purchasing a car is the payments necessary for it. Buying a car is a great milestone in anyone’s life, why would you want it clouded with problems? Remember that most salesmen are looking out for themselves and while they may say it’s an amazing deal, it might not be. A good deal will allow you to make consistent payments on time, and will not punish you over a large period of time. Cancelling your financing is another great way to get out of poor deals and look out for yourself.