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Avoiding car dealer tricks

It’s that time of year when car dealers promote big discounts as they scramble to hit sales targets and make space for new models. It can be an opportunity to pick up a bargain, but nothing can take the shine off a good deal quicker than choosing a bad option for your car finance.


It's that time of year when car dealers promote big discounts as they scramble to hit sales targets and make space for new models. It can be an opportunity to pick up a bargain, but nothing can take the shine off a good deal quicker than choosing a bad option for your car finance.

Dealer finance - what are you really paying?

Dealer finance may seem like an easy option - often with very low rates, even 0% p.a. deals. But you could end up paying far more than expected.

Here's why:

  • The price of the car is often less open to negotiation
  • You may be offered a low trade-in value on your current car
  • You could face hidden finance charges including monthly fees and commission
  • Finance can be very restrictive - often offering fewer of the flexible features found with other car loans
  • Early payout costs can run into hundreds of dollars
  • You could end up with an incorrect or inappropriate 'residual value' costing you thousands

Not convinced? Check out our Money Chat video ‘What exactly do you get with dealer finance?'.

Drive a great deal at the car yard with pre-approval

At Mortgage Choice, we can help you make a better choice with your car loan. With access to over 25 lenders for car finance, we understand the different options available and can help you take advantage of flexible loan features that fit with your lifestyle.
We'll also help you organise pre-approval before you visit the card yards, so you're in a good position to bargain hard for a great price. It's a great way to make sure you won't get stung by higher than expected finance costs.

We can also help find your new car

Our new car buying service gets you the right car at the right price, delivered to your door. Use our national buying power to get a great deal with no haggling and no hassles!

 

Posted in: Asset finance

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