Get The Most Favorable Financing & Insurance Deal

Invoice pricing is easier and more popular than before. This is making it difficult for dealer to squeeze gains out of transactions in new cars. Most of the profit has gone reverse gear to the “back end” that is inclusive of the F&I Department. Many of buyers let go of their defenses in the F&I department and forego any solid bargaining they have managed on the purchased price of the car.

For financing a car purchase there are many alternatives – credit unions, banks as well as dealers. In some instances the loan taken from the dealer comes from a bank on whose doors you can directly knock yourself. Actually dealers play the role of being loan agents while trying to help the buyer get the best rate. But what they do is to add to the percentage over and above what they get from the banks which they pocket.

There are a good number of captive financing firms that offer loan rates that are discounted. One can get the best deal by financing through them. The chances of making savings increases, if one shops during a period when incentives are being offered.

Back-End Products and Services:

The F&I manager also deals with extra products and services – these considerably add to the profits of the dealer. These are inclusive of service contracts.

Service contracts are warranties that are extended. The plans start operating when the warranty of the manufacturer expires and often covers certain repairs that have been excluded in the warranty. For those opting of service contract certain points need to be remembered.Some contracts have while others do not have deductibles. The amounts differ and one may not have to pay for a deductible for every claim made or separately for repairs that are not related in that same claim. Details should be got.

It should not be assumed that if you change addresses the contract will also automatically shift. Find out if there is this clause about shifting and if so what the related fees are.

The contract may not be binding to another owner. Thus although the extended guarantee is an attractive clause it should be checked whether it is tied to the owner or the vehicle; find out the fees involved for transferring from one owner to another.

It is well to remember that the parts or systems of the car might cause damage to another section of the car.

If one is taking loan for a long term running into five or say six years the mileage limitations should be checked of the extended warranty. It could happen that you might go beyond the limits of mileage and thus lose out on the warranty even before the end of the financing period.

Rust-proofing and paint protection:

Rust resisting galvanized steel or aluminum or fibre glass are used to build the new cars and these are treated with rust-proofing chemicals in the factory.

Fabric Protectant:

As distinct from rust-proofing, fabric protectant can be successfully applied on the car after the latter has been assembled. In other words – the dealer can perform this function and so can the buyer. All that is required to get the same result is a knack for the work and the time for it.

Vehicle Service:

The basic point about dealerships is that the service section can contribute handsomely to profit percentage. The National Dealers Association reported that sections dealing with services and parts comprised of 55% of all the operating profits of the dealers.

If the buyer comes up with a perfect trade-in and accurate maintenance and repair records, then the dealer will get the message that the buyer is a good bet for few years of unbroken service. This will be an incentive to offer a handsome deal on the buying price.