First and foremost, the 20/4/10 rule is not a law. It’s more like general guidelines and a way to plan for vehicle expenses. Basically, the rule goes that you provide a down payment of 20% of the balance, sign a loan for a four-year period, and pay no more than 10% of your monthly income on car expenses.
What is something you should consider when financing a car?
Total purchase price. Total purchase price is the biggest impact on how much you’ll pay for the car.
Interest rate, or APR. The interest rate is typically the second biggest factor in how much you’ll pay overall for a car you finance.
The terms. A loan term refers to the length of time you have to pay off the loan.
Don’t Let the Salesperson Steer You to a Vehicle You Don’t Want.
Don’t Discuss Your Trade-In Too Early.
Don’t Give the Dealership Your Car Keys or Your Driver’s License.
Don’t Let the Dealership Run a Credit Check.
What should you not do when financing a car? – Related Questions
What are car salesman tricks?
6 Tactics of a Used Car Salesman
1) The Hard Sell. This is the salesperson that simply won’t leave you alone.
2) Selling on Payment Instead of Price.
3) The Trade-In Trick.
4) Bad Information.
5) Hidden Fees.
6) The Waiting Game.
Now for the Good News.
Why do dealers want you to finance through them?
“Car dealerships want you to finance through them for two main reasons: They can make money off the interest of a car loan you get through them. They may get a bit of a kickback if they’re the middleman between you and another lender (commission).
What do you say when a car dealer asks your budget?
Instead, politely say you would like to discuss the price of the car, including all fees and taxes. You want to know the “drive-away” or “out-the-door” cost of the vehicle they’re willing to give you, not the MSRP, or sticker price.
Should you tell a car salesman your down payment?
California’s ASFA (at California Civil Code Section 2982(a)(6)) specifically requires that all vehicle purchase contract expressly disclose the amount of any deferred down payments that the car buyer has agreed to make.
if the dealers aren’t affiliated then no, but if they are part of the same affiliation like Hendrick or autonation then there’s the possibility they can see you in the system, two things can happen either they will see you as kicking tires or a serious buyer so either you get the best offer they can make or you get a
Can you walk around a car dealership alone?
Don’t go to a dealership alone.
Make sure you don’t get outnumbered. Take a friend or trusted family member along. But take someone you can count on to get you out of trouble. The last thing you want is a “friend” who will back the sales team and tell you to buy something you don’t want.
What should you not say to a car salesman?
5 Things to Never Tell a Car Salesman If You Want the Best Deal
‘I love this car. ‘
‘I’m a doctor at University Hospital. ‘
‘I’m looking for monthly payments of no more than $300. ‘
‘How much will I get for my trade-in? ‘
‘I’ll be paying with cash,’ or ‘I’ve already secured financing. ‘
What questions should you ask a car salesman?
Things to Consider Before You Buy A Car
Where is the purchase agreement, and what is in it?
What does the warranty cover?
What does the long term maintenance look like?
Is the price on the paperwork the best your dealer can do?