Dealership Financing and Car Warranties

You've all heard some horror stories about car dealerships. We'd all like to blame the dealership, but getting ripped off at the dealership can easily be avoided by doing your research before you step foot on a car dealership lot.

The majority of car salesmen are paid solely on commission, meaning they don't get a dime if you don't buy a car. Often times they receive higher commissions for the amount of profit they make on a car. For example, if the overall profit on the car was from $0-500, the commission percentage may be 15%. Profit of $500-1,000 raises the salesman's slice of the pie to 20%, and over $1,000 may increase the commission to 25%. While these numbers are hypothetical, this type of tiered commission structure is very common for car dealerships. Obviously the salesman wants to make as much profit on the car as possible so they make more money and get the higher commission percentage.

Dealership Financing
Some subaru outback near baton rouge dealerships like to advertise great finance rates, such as $0 down or 0% APR. Unfortunately, these offers are only eligible for people with great credit scores that meet other stringent requirements as well. These offers are used as bait to get you to visit the dealership. The typical loan interest rates (APRs) at a car dealership are lackluster at best. Dealerships simply sell you financing from local banks, and they often times add 1-2 percentage points on top of the bank's loan offer to make even more money off of you. Worse yet, car dealerships are not required by law to disclose this information.

Rather than opt with dealership financing, you can use your current bank or credit union. It is also advisable to shop for car financing online before visiting the dealership. Some car finance websites will show your local car loan rates in your area. Most of the sites also offer quick, no-obligation car loan quotes.   Read https://www.reference.com/vehicles/locate-car-pros-dealerships-b591de525ef2f7ed to gain more infoabout auto dealership.

Extended Car Warranties
Just like financing, the subaru dealerships gulfport is simply a middleman when they offer extended car warranties. They sell these extended warranties because they make money off of them by making you pay extra for the warranty, and that extra money is straight profit for the car dealership. Do not buy your extended car warranties from the dealership. There are online sources for buying extended car warranties straight from the source, eliminating the extra cost of going through the middleman (the dealership).