3 tricks car dealers use to get you to spend more money, according to a former salesman. (via CNBCMakeIt)
One of the biggest mistakes first-time car buyers make is overspending, says Weliver. It's particularly easy to do if you're financing your car: "Dealerships love to focus on the monthly payment and distract you from what you're really paying for the car — the bottom line price."
Today, car companies will offer terms up to 80 months, which is nearly seven years. "They do that because cars are getting more expensive, so in order to keep the monthly payments looking affordable, they're stretching the term out," he says. You want to keep the term as short as you can afford, says Weliver. That way, you'll pay less in interest and your rate might even be lower, as lenders tend to charge higher interest rates for longer loans.
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