“The reason that the dealer drops the price if you finance through them is that they can make it back on interest.
Before agreeing to the dealership’s finance, check what the Kelley Blue Book value
is. Is it $12,000, $16,000, or somewhere in between? Never buy a car for more than the Kelley Blue Book value.
If the dealership’s price is actually
lower than the vehicle’s actual cash value, check to see if there’s any prepayment penalty
. If there isn’t, take the dealer financing.
To negate the high interest rate, you can always go to a credit union or bank and refinance the vehicle at a lower interest rate. By doing so, you get a lower price for the car and a better loan rate.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry
app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”