Its a common scenario. You’ve spent all day looking at cars and haggling over price, payments, and options. You have finally reached an agreement and are moved from the salesperson to the finance guy. You are tired. Your kids are grumpy. You are hungry. But you need to WAKE UP. Here is where they are going to get you. If you relax now the payment you just haggled over for hours could shoot up hundreds of dollars.
Take your time. Take a deep breath. Do the math. YOU are the customer. They are here to serve YOU. YOU can do this. I believe in YOU.
Each time they throw something your way, do the math. The math is important. It’s not complicated math. It’s just math they don’t want you to think about.
Ask yourself all of the following questions:
- How many automobiles do you plan on owning in the course of a lifetime?
- How much will gap insurance cost for each of those vehicles?
- If you totaled your car, how much would it be worth vs. how much do you owe on the note?
- Could you come up with that amount of money using savings, credit, or some other means?
- How much interest will you pay on the gap insurance over the lifetime of your auto loan?
- How much does it add to your payments?
- Can you afford it?
- How much does the gap insurance cost versus how big is the gap?
- How long will the gap last vs. how long will you be paying off the gap insurance?
If they won’t be quiet while you think or you feel way too much pressure with them sitting across from you, then say you need to use the restroom, or say will need some time alone with your partner to discuss. You aren’t on their clock. They are on your clock. YOU are the customer. YOU are going to pay for this decision. YOU need time to think.