4 car finance secrets your dealership probably hasn’t told you

Car Finance


It’s fairly easy to go to a car dealership, find a car you like, and let the dealership take care of all the car finance requirements for you – just a quick chat about the lowest amount you can pay back each month, sign the papers, and the keys are yours! Sounds like an easy and uncomplicated way to go … or is it?

Allowing a dealer to handle all aspects of your car purchase, is placing a lot of power over your financial situation into his/her hands. It might seem easy, considering it’s likely that you’re trading your existing car and the dealer is the one taking it off your hands. He or she may even be weaving a cashback arrangement in to the deal, and of course your new car will be provided through them.

You’re giving away much of your bargaining power.

You’re leaving too many elements to the discretion of the dealership for the sake of perceived convenience.

When you walk into a dealership with your car finance already in place, your bargaining position is immediately far stronger. You aren’t entirely reliant on the dealer, and it’s clear that your status of ‘qualified buyer’ is validated. It’s been reviewed, confirmed and approved by a legitimate lending institution.

Confidence is a trump card.

Without a hint of doubt or desperation, you’re able to focus on what matters at this stage, which is choosing the right car for you, and getting the best deal. Psychologically you’re at an advantage by having preapproval from your own lender, and knowing that you won’t need to rely on the dealer to make a decision that has such influence over you. And the dealer will be required to respect that, knowing that they buying power is yours.

Simply put, you’ll get a better deal.

While we’d like to think that car dealerships are in the business of selling cars, for many that’s just not the case anymore. Nowadays, when a dealer handles the financing of your car, they’re likely to be making money not only on the sale of the car, and also on the car loan itself. And the higher priced loan that you are locked into, the higher the profit, which will have you paying over more every month.

Get your credit ducks in a neat row.

When you apply for car finance before approaching a dealership, you have an advanced opportunity to ensure you qualify for the best terms possible. And if you don’t quality, you’re giving yourself the opportunity to correct the criteria where possible, so that you get a better deal once you’re at the dealership.
You don’t want to find out about a smudge on your credit rating when you’re sitting in a chair at the dealership, with an emotion attachment to a particular car. The risk then is that you’ll push ahead anyway, and the cost of a high rate loan with questionable T&Cs, because you’ve passed the purchase ‘point of return’.

We know you and you know us.

When you apply for a car loan with NZCU South, we will either have an established business relationship, or we will be building one to see us into the future together. We’ll have all your information on file, and won’t be putting it into someone else’s hands to make this decision for you.

Considering how you’ll be empowered with pre-approved car finance, especially your stronger bargaining power, it makes good sense to arrange this with us first.

If you’d like some help on what to look for when you choose a car, don’t miss our article ‘Things To Know Before Buying A Car’. And if you’re ready to apply for a car loan so you know how much you can spend, give our friendly NZCU South team a call on 0800 53 63 28 to process your application, or complete an online application.

Apply now for a personal loan