How Ignoring the Sales Guy Can Save You THOUSANDS on Your Next Car

Before I get started here just let me say that I love car dealers. I’m always at dealerships checking out cars and talking shop with folks. Cars are one of my passions so try to stay up-to-date. However, the sales guy or gal at the dealership has a goal in mind when they are talking to you. Their goal is to get you to put in a credit app. The more apps they get, the more at-bats the finance manager has to close deals, the money everybody at the dealership makes.

So when you hear a salesman tell you, “All you need is a 520 to get a deal done here!” or “Credit score doesn’t matter so much, we go off the history,” or any other number of lines, take them with a grain of salt. Again, I’m not here to bash sales guys, I love sales guys. All I’m saying is, recognize their agenda.

A difference of just 10 points in your credit score could be good for a percent or more on your car. Let that marinate for a second. That means the person with a 640 could be paying 1% more for a car than the person with a 650. You can slide this scale wherever you like, the difference could potentially be even more. What does 1% matter? Well, the average transaction price of a new car or truck sold in the US was $33,560 all the way back in April 2015. That 1% means you’re paying $335 more in the first year for that car. This is an oversimplification of the math to make a point. Now extrapolate that over 5 years.

Here are the real apples-to-apples numbers:

A $33,560 loan at 4% over 5 years: $618 a month payment and $3,523 in interest.

The same $33,560 at 5% over 5 years: $633 a month payment and $4,439 in interest.

Just 1% made a difference of $916 over the life of the loan. What if you could lower your rate 2, 3, even 5%?

Imagine, if rather than jumping into that car, you spent 3 months getting your credit up. 3 months here at 86 Credit would have set you back $258 and if you even just bumped up 10 points you would have saved $916. Do you know of an investment that could return 255% guaranteed over 5 years? I don’t think so. GET STARTED TODAY!

This is why I beg people, before you buy a new car, at least TAKE A LOOK at your credit report. Often times, one simple trick can bump up your score dramatically.