Ideally before applying for an auto loan you will already have some idea of what type of car it is that you want. It would also help further if you knew exactly which car you wanted as that way you can get the exact loan amount and you will not owe a dollar more than the car price.

Also, it is always a good idea to try and negotiate with the dealer of the car before you agree to buy it as you might be able to get a discount.

The Art of Negotiation

When it comes to purchasing a new or used car, there is always usually room for a little negotiation, more so with newer cars than used ones. It is all about doing your research and finding out what the particular car model usually goes for when it is either new or used, depending upon which type you want to purchase. By having a good idea of what the average price is it gives you a good starting block for negotiation.

So why is negotiation helpful if you are getting the car on an auto loan? Well quite simply because if you manage to lower the price of the car, you lower your auto loan and therefore lower the monthly repayments. That is why it is better to select a car and a price before you apply for the auto loan.

Once you have realized that negotiation is a good tool to use, how do you go about negotiating with a dealer? Usually negotiating is better done if you:

• Know what you are talking about


• Have research to back up your facts


• Stay calm and friendly yet firm

The sales person at the dealership is there to do their job and their job is to charge you as much as possible for the car. They will try to sell you extras too which you could get at a much cheaper price elsewhere. Now most people know this and they can be quite rude to the sales person when it comes to negotiating but unfortunately that will not work. You will need to stay calm, friendly, listen to what the salesperson has to say and then politely decline the offer. Be relaxed yet be firm and let them know that you would like a better price for the car.

If you have done your research and it shows that the particular car which you are purchasing is usually less than what the dealership is charging then show them your proof. Usually negotiating will go in your favor because the sales person would rather make a knocked down sale rather than non at all. However you do need to do your research beforehand.

Overall negotiating a better, lower price can help to reduce your auto loan repayments so it is always worth a try.