9 questions to ask before financing a car. Car buying tips

Inside a car dealership, you have the finance manager. Their first job is to secure the deal for the car salesman. Then they sell you financing, warranty, gap insurance, and other ancillary products. enjoy these car buying tips.

So you’ve agreed to purchase a car but have you asked all the right questions before you walk into that office confidence that you’ve made the right decision there’s no such definition of good deal it’s subjective however the lack of knowledge and confidence can definitely make you feel like you got a bad deal there are two types of questions in this world open-ended

Questions and close into questions open-ended questions give you great conversation build a rapport and better fact-finding results closed into questions they only result in yes or no answers which is very difficult to learn anything in this video i’m going to teach you the questions to ask that finance manager before you sign in the dotted line first best question

To ask is how does the manufacturer rates compare to the lenders that you guys use now this is a big question that i get every day especially on the corvette and i tell people all the time gm financial does not give you good rates unless the manufacturer incentivizes them so never ask really too much with gm but honda subaru toyota all those places give amazing

Rates that most likely the banks on the outside can’t touch when they’re a captive financing so make sure you ask those because you can get 0.90 1.9 and all sorts of crazy rates when the manufacturer backs that lender does the bank have a prepayment penalty that is a great question to ask now prepayment penalties are pretty much a thing of the past they’re not out

There anymore but there are a couple banks here and there that i deal with that does have them and i just don’t know nationwide who has the most of your captive financing banks don’t have them so you’re probably safe there definitely make sure you ask that question and also at the end of the video i’m going to link you to how to read a bank contract that i did a

Video a few years ago there is a hack around prepayment penalties let’s say you make a 500 a month car payment and you have twenty thousand dollars left on your principal balance all you have to do is make a nineteen thousand five hundred dollar payment and then just let them deduct the next payment of 500 out of your account and you’re good to go and there’s no

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Prepayment penalty if there is it’s on only going to be on the 500 or a very small fee they do have some goofy prepayment penalties out there so make sure you ask that question dealers love to play games with your credit score the lower the credit score the higher the rate is and they’ll use that to their advantage so make sure you ask the dealership finance manager

Which credit bureaus were pulled from me today there’s three credit bureaus that dealers and banks use and they will show you your lowest credit score to get you to pay a higher interest rate so you also want to ask them will you give me the risk-based financing notice for all the bureaus that you pulled the reason you want to do that is because dealerships will

Use your 680 credit score and tell you that you qualify for a higher rate when your transunion score maybe had a 727 3750 score that would result in a lower interest rate so when you ask for all of those to be shown to you they can’t hide behind that lower credit score a great question to ask is what term gets me the best rate just because you financed for 36 or

48 months doesn’t mean that the banks are going to reward you with the lowest interest rate in the past that used to be true but i’ve seen better interest rate on 72 months than 60 months banks think you will pay the car for a longer term so they can reward you with a lower interest rate on 72 over 60 or 60 over 48 they will do so if you plan on paying it off in a

Shorter period of time hey take that lower payment and take that lower interest rate and pay it off at your convenience but always ask which term gets you the best interest rate hey make sure you check out the awesome chevy dudestore.com get your swag support the channel and every time you make a purchase we give a portion of the proceeds to charity and that charity

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Usually always has to do with helping kids out these next couple questions are really going to confuse the funniest manager no customer has ever asked these questions to a finance manager but if you ask this too early it’s going to backfire so make sure you ask these questions after they reveal the interest rate that you qualify for this one’s very specific you’ve

Got to ask it this exact way how many banks gave full approvals now the word full means exactly how much money you ask for if you’re asking for twenty thousand dollars some banks will say listen we’re only going to finance seventeen thousand some banks will be like yeah twenty thousand for this person’s not an issue make sure you ask that question if it’s two if

It’s three if it’s four you’re gonna find out why that question is important to ask so after that question is asked and answered the next one you’re going to ask is which bank are you going to write the contract with a terminology used in the car business is full call approvals we’re using the terminology of full approvals but you want to ask that question because

The next question is really going to get them and that would be why did you choose abc bank i’m telling you they have never been asked that question before and there’s a reason to that question as well because there could be some underlying reasons why they chose that bank it could be because they get the best finance reserve may not get the best interest rate but

It gets the dealership the best finance reserve unbeknownst to most people banks are not always saying that you can mark the interest rate up they’re basically saying listen you can write it at this amount we’re going to pay you five percent of the amount financed if you start marking it down because your customers being competitive on rates will pay you x amount

We’ll pay you x amount and then you can start going down so the dealership can go down but they can’t go up from that call that the dealership showed you and one of the biggest misnomers is out there is like ask the dealership to show you the callback sheet they’re not going to do that i promise you you’re just going to start a battle and start a war so get that

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Out of your repertoire if you’ve learned this from anyone else because they could use this same exact banks like oh yeah right here’s the call sheet and they’re getting five percent of the amount financed that’s not a bad thing you’re not paying for that but maybe you can get a rate somewhere else lower because we’re going to ask the next question of did another

Bank approve me me for a lower interest rate now watch the funniest manager’s eyes they’re gonna pop out of his head because they’ve never been asked that question before and that direct of a question you’re trying to find out if that there is a lower interest rate and if you also have asked already which bank that you can say listen i bank with pnc bank i bank

With huntington bank i bank with this credit union do you guys write with this credit union see how all these are open ended with linking questions if i just asked a yes or no question i would never get any of this out of the finance manager i’ve been seeing this question pop up on the channel all over the place and i’m telling you it’s the worst question to ever

Ask anyone at a car dealership and that would be is that the best you can do the reason why this is a horrible question is because this is a closed-ended question that’s gonna reach the verdict of yes being said the vast majority of the time as you noticed in all of my questions they were open-ended questions with linking questions available to ask we have two of

These and one of these and we have to use them according really if you found this content awesome make sure that you hit the subscribe button turn your bell notifications on share this with a friend to help them out and leave a comment below

Transcribed from video
9 questions to ask before financing a car. Car buying tips By Chevy Dude