Whether you buy a car from a dealership or online, there are still only two methods of payment: cash or finance.
If you have the necessary cash, good for you as this puts you in command. If you can find a very motivated seller and let him know you intend to pay cash for the car, you can very often get it for way less than the asking price.
Buying online for cash doesn’t negate the need for inspecting the vehicle. This inspection includes a test drive, close inspection of the title document and a Carfax or similar vehicle report.
Once you are satisfied with all the terms, invite the seller to meet you at your bank at a certain time and date. Tell him to bring along a Bill of Sale and the Original title to be signed over to you. Your job is to present him with a Certified Check drawn on the bank where the meeting takes place.
When speaking about the Certified Check instead of outright cash, we are assuming the car is priced at way more than say $500.00. Cash is fine for smallish amounts. You just don’t want to hand over $10,000 in cash to a stranger for a strange vehicle as you have no recourse should something go wrong.
If the seller balks at receiving a Cashier’s Check, you may want to ask him why. Then again, you may not want to know the reason. You can merely say that this is the way you conduct business.
If you do meet your seller at the bank, for your own sake, be sure to stand in a spot where you know the bank’s security cameras will tape the transaction.
If you are paying cash at a dealership, get the total amount of the purchase so you can hand them a check in the correct amount. Many car dealers will take your personal check but have their cashier call the bank to check the funds and put a hold on them until the check clears.
Read your sales agreement very carefully as dealers are very good at adding extras that were not brought up in your verbal discussions.
If you are financing your purchase, you will want to have all your ducks in a row before you begin your search. Call your bank or whomever you have lending you the money and tell them exactly what you are looking for. They will tell you the average loan on the car you want, and this will tell you how much down payment you need.
Also inform your lender that you are purchasing from a private party and find out their rules and regulations governing such a purchase. Many times, they will deal directly with the seller after you plunk down your down payment with them.
If you are purchasing from a dealer, you still need your financing in place before you shop for a car. This way you are certain of the type of car you can afford and precisely what your rate of interest on the loan will be.
Word to the wise: Salespeople and finance managers at car dealerships strive to increase your interest rate should you finance through them because they earn a commission over their backer’s stated interest rates.
Have you been questioning, just how do I make a Pilot Trade, talk to the team at TradeIn Genie.