Tips for Saving Money When Buying a Car

💰The out-the-door price is the total cost of the vehicle, including fees, taxes, and dealer charges.

🚗Maximize the value of your trade-in by using a car selling service like Car Edge to get competitive bids.

📊Ask the dealership for the buy rate and the sell rate to understand the interest rate markup on your loan.

💲Get a breakdown of the costs of additional products offered during the finance and insurance process to make informed decisions.

🔍Get pre-approved for a car loan from a credit union or bank to know your terms and budget before negotiating with the dealership.

What is the out-the-door price?

—The out-the-door price is the total cost of the vehicle, including all fees, taxes, and dealer charges.

How can I maximize the value of my trade-in?

—Use a car selling service like Car Edge to get competitive bids for your car and bring that information to the dealership to negotiate a stronger trade-in value.

What is the buy rate and the sell rate?

—The buy rate is the interest rate the dealership gets from the bank to buy the money for your loan. The sell rate is the interest rate offered to you, which includes a markup by the dealership.

Should I buy additional products offered during the finance and insurance process?

—It's important to get a breakdown of the costs of these additional products and evaluate their value before making a decision. Consider if they align with your needs and budget.

Why should I get pre-approved for a car loan?

—Getting pre-approved for a car loan from a credit union or bank helps you know your interest rate, term, and budget before negotiating with the dealership, allowing you to make a more informed decision.

00:00In this video, Ray Shfa, a former car salesman, provides tips for saving money when buying a car.

00:16The out-the-door price is the total cost of the vehicle, including fees, taxes, and dealer charges.

01:46Use a car selling service like Car Edge to get competitive bids and maximize the value of your trade-in.

02:57Ask the dealership for the buy rate and sell rate to understand the interest rate markup on your loan.

03:56Get a breakdown of the costs of additional products offered during the finance and insurance process to make informed decisions.

05:32Get pre-approved for a car loan from a credit union or bank to know your terms and budget before negotiating with the dealership.

05:48By following these tips, you can save money and make informed decisions when buying a car.