There are a lot of ways dealers are trained to convince you to buy a car even when it's not in your best interest. I've mentioned a lot of the games dealers play on my website but don't take my word for it. Here is what financial counselor and talk show host Dave Ramsey has to say on how to buy a car. One caveat, he suggests paying cash will get you a better deal. This isn't always true. Dealers usually prefer that you not pay cash because they make a lot of money on financing your purchase. It used to be true that paying cash would save you money because the paperwork involved for the dealer was so cumbersome they'd pay you to avoid it but with the simplicity added with computers that's not so much the case anymore. In some cases a dealer has to pay to get a customer with bad credit a loan so if they could pay cash it would help the dealer.
If you are going to borrow money then shop around. Dealers usually get a cut when you finance through them. Check with a credit union to see what their current rates are. Due to their status as a co-op credit unions don't pay the same taxes as a regular bank and the strip mall located loan operations usually have the highets rates. It's like any business. The higher the overhead the higher the product must cost.
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