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Secrets every new car buyer must know | DirectAsia Insurance


James Bond. When does he ever lose at anything? OK, he frequently gets roughed up and left for dead. But you’ll never see him lose at poker, he always gets the car he wants AND by the end of the movie, you can guarantee the bad guys will have given up all their secrets.

It’s all down to confidence, and confidence comes from having the upper hand. When you are looking to buy the car you want, DirectAsia has the inside track. We’ve learned from the best, read this and go be like James Bond.

Secret #1: Negotiating on Monthly Payments

Watch out when a car dealer starts to talk about monthly payments. Salespeople may want you to focus on lower monthly payments, giving them room to inflate other variables, like the length of the loan and the interest due. This increases the dealer’s profit and leaves your bank account depleted.

What To Do: As a new car buyer, pay cash for the car or get your own financing if you can. Tell the salesperson you can talk financing later, after you’ve negotiated the total car price. If you do need to discuss financing with the car dealer, focus on the annual percentage rate (APR) rather than monthly payments.

Secret #2: Making You Think Your Credit Sucks

If you don’t know your credit score, you leave yourself open to a car dealer inflating the interest they offer on your loan. You can avoid this scam by financing the car yourself, or shopping around for a better loan. Perhaps a bank would offer a 5% loan, whereas the dealer might say 7% is all they can offer for your credit score.

What To Do: Get a copy of your credit report and bring it with you. Whatever your credit score, at least you’ll know if the dealer’s trying to dupe you.

Secret #3: Bait and Switch

The oh-so-friendly car dealer who is giving you the best deal despite the anger he or she will incur from some faceless manager in the back room. You might be offered a great trade-in or an ‘unheard of’ discount on the total price of the new car. Edmund.com’s Confessions of a Car Salesman series reveals how a deal can be made only to be “lost” or “forgotten” by the dealership, forcing the customer to pay more.

What To Do: Car dealers are doing their jobs, they want to make money and they are not your friends. Don’t fall for emotional blackmail, or the good vs. bad guy routine. Be prepared to walk away if they don’t honor what you agreed upon. Better still — always get your agreement in writing.

Secret #4: Add-Ons and Fees

By the time you have found the car you want, got your financing in place and negotiated the best deal, you will probably just want it all to be over. A tired new car buyer can be easy prey for a car dealer looking to add extras to your purchase. Like an extended warranty, at “only $40 more” a month. Do the math. That $40 extra will cost you over $2,000 on a 60-month loan!

What To Do: Know which add-ons are unnecessary, common offenders are the hidden “loan acquisition fee”, “customer service” or “administration” fees. Check your final contract carefully. Car salespeople aren’t the equivalent of the latest James Bond bad guy (Spectre we’re looking at you), but they can prevent you from getting the best price for your new car. Always do your research before you buy.

Something To Think About: Beware of buying insurance offered alongside something else e.g. hotel + travel insurance, or new car + insurance. You are not technically obliged to buy car insurance from your car dealer. The confident new car buyer will always shop around to get the best price.

Save Money Today

Going direct with car insurance from DirectAsia can save you up to 25% on your policy. It is super quick to get a quote. Your bank account will thank you.

*Compared to leading car insurers. 16% of DirectAsia customers would save $300 or more compared to the estimated average premium across leading insurers. Cheapest based on average price of more than 12,000 cases, compared to leading car insurers.