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You've found a car you want, but now you have to face the finance manager. Unlike a banker, most finance managers work on commission and their ultimate job is to make the dealership money. [1] These skilled salesmen are very good at what they do—but you can be better. Read on to find out everything you need to know to beat the finance manager at their own game and potentially save thousands on your new ride.

1

Be ready to walk away at any time.

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  1. Remember that you're there to complete a business transaction at the best possible terms for you. You're not there to make friends. Avoid making a lot of small talk or answering personal questions. If you set these boundaries early, the finance manager will be less likely to pressure you. [2]
    • For example, if the finance manager asks if you have any kids, you might say, "I'm not here to talk about my family. I'm here to buy a car."
    • When you walk into the finance manager's office, greet them as an equal. If you're normally a shy or timid person, psych yourself up first. Go in there and be bold about what you want.
    • Always look at the car during the day! It's much more difficult to see any potential issues in the dark. [3]
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2

Check your credit before you start looking at cars.

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  1. It's always a good idea to pull your credit report before you apply to finance a car. If there are any errors, get them corrected before you apply for car loans—the boost to your score could save you thousands. [4]
    • If you order a free credit report, it won't include your score. Check with all 3 major credit bureaus online for your score.
    • The types of credit you've had also helps lenders determine how risky it is for them to lend to you. For example, if it's your first car, you're unlikely to get the best rate even if you have a great credit score.
3

Assess the value of your trade-in.

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4

Get competing finance offers.

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  1. before you go to the dealership. Start with your own bank. You're likely to get a great deal from them, especially if you've had an account with them for several years. At the dealership, let the finance manager make an offer. Then, bring up the pre-approved financing offers you already have as a bargaining chip. [6]
    • Because finance managers at dealerships typically have several lenders bidding for the same contract, they can often get you an even better rate than you could get on your own—but they won't do this without some nudging from you.
    • If you're a first-time buyer, check out local credit unions. They're often willing to take on more risk than other lenders, so you're more likely to get a good rate despite your lack of credit history.
    • Getting pre-approved for a loan can also help you figure out what your budget will be. [7]
    • Here's a public resource you can check out for auto loan shopping: https://www.consumerfinance.gov/consumer-tools/getting-an-auto-loan/plan-to-shop-for-your-auto-loan/
5

Look up manufacturer rebates if you're buying a new car.

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6

Focus on the total price over the monthly payment.

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7

Nail down one aspect of the deal at a time.

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  1. One of the most notorious ways they do this is by using the "four-square" worksheet. This sheet has 4 squares with amounts for your trade-in, total price of the car, down payment, and monthly payment. Refuse to use this worksheet and insist that you only want to focus on one thing at a time. [10]
    • Your monthly payment is based on the finance term and the interest rate, both of which are negotiable—work on those and the payment will follow.
    • Settle on the total price of the car first. Then, deal with your trade-in if you have one. After that, you can work on financing. [11]
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8

Ask the finance manager to explain each fee.

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9

Negotiate the rate on your loan.

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10

Refuse unnecessary add-on products.

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  1. You're already there and you're already making a purchase of tens of thousands of dollars. What's a few hundred more? The finance manager is an excellent salesman and will take advantage of your nervousness to sell you extras they promise will enhance your car's value and safety. Don't fall for it! [14]
    • For example, they might offer to etch your car's VIN on the window for added safety and anti-theft protection. The dealer will charge hundreds of dollars—but you can buy a VIN etch kit and do it yourself for less than $25.
    • They might also offer you Scotchgard protection for your interior. This is also something you can do yourself for around $25 or $30 that will cost you hundreds of dollars if you add it on through the finance office.
    • You can also buy an extended warranty or service agreement later. In fact, you can buy it any time before your warranty expires. It's a good idea to wait if you're not sure how long you're going to own your car.
11

Take time to read through the contract.

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  1. Step outside if you need to, but get out of the finance manager's office. You don't want them hovering over you or pressuring you in any way. Mark the items that you don't understand so you can ask the finance manager to explain them to you. [15]
    • Remember that you control the pace of the interaction. Don't let an "impatient" finance manager rush you into agreeing to something you don't completely understand.
    • When you ask about something, the finance manager might say, "that's not important" or "don't worry about that." Respond with, "If it's not important, then it shouldn't matter if we just take it out, right?"
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13

Resist pressure to buy immediately.

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14

Wait to sign until the deal is final.

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