It’s a fact: car dealers are much more experienced at selling cars than you are at buying them. It’s their job to make money, and they do that by getting the highest possible price for the vehicle you want. Keep these common car-buying pitfalls in mind to avoid overpaying for your next car.

Trick #1: It’s all about the monthly payment.

Salespeople want to know how much you can afford to pay per month so they can calculate the maximum you can spend.  To sell a more expensive vehicle but keep within your payment range, they might extend the term of auto loans for as long as possible – and you end up shelling out thousands more than you planned over a longer loan period. To get the best deal, focus on the selling price of the car, not on monthly payments.

Trick #2: Using rebates in the negotiation.

Rebates can be an enticing selling point, but keep in mind that rebates come directly from the manufacturer and apply regardless of the price that you negotiate with the individual dealer. Be clear that you are negotiating on the price of the vehicle before rebates. Then make sure the rebate is applied to your purchase price so you don’t have to pay taxes and interest on the rebate.

Trick #3: Telling you your credit sucks.

Before you head to a dealership, take the time to check out your credit report and credit score. Even if you have to spend a few bucks to get it, knowing this information could save you big-time. Occasionally dealerships will say you don’t qualify for a better rate due to your credit; if you already know where you stand, there will be no room for rip-offs.

Trick #4: Adding profit with add-ons.

Dealers can increase their profit by adding extras to your purchase or financing. Extended warranties, document preparation fees, loan acquisition fees, fabric protection ... the list of add-ons can be long and unnecessary. Make sure you check the sales documentation carefully and deny any extras you don’t want.

Save with a City Bank Auto Loan.

Get competitive rates on your next vehicle purchase and save yourself the stress of haggling with a car dealership with an auto loan from City Bank! You’ll love our competitive rates and simple online application process. Fill out an application to get started on the approval process for Dallas auto loans.