# Negotiate the smart way.
If you’re looking to finance a new car, you’ll likely have to take out a loan. And if you’ve never done this before, the process can seem a bit daunting. But don’t worry – we’re here to help. Here’s everything you need to know about how to negotiate a car loan.
Key to successful negotiation
The key to successful negotiation is to be prepared. Know exactly how much you can afford to pay each month, and be clear about the terms of the loan you’re looking for. Then, when you sit down to negotiate with the lender, be confident and firm in your requests.
If the lender isn’t willing to meet your needs, don’t be afraid to walk away. There are plenty of other options out there, and you shouldn’t settle for anything less than what you’re looking for.
With a little preparation and some confidence, you’ll be able to negotiate a great car finance that meets your needs and budget.
Clear and concise about what you're looking for
When you’re looking to buy a car, it’s important to be clear and concise about what you’re looking for. You need to know your budget, what type of car you’re after and what features are important to you. This will give you a clear idea of what you’re looking for when you start negotiating with dealers.
Research what the car is worth
Before you start negotiating, it’s important to research what the car is worth. This will give you a better idea of what you should be paying for the car. You can use websites like Trade Me or Redbook to find out the value of the car.
Know your finance options
When you’re looking to finance a car, it’s important to know your options. There are a few different ways to finance a car in New Zealand, so it’s important to compare your options and find the best one for you. You can either finance the car through a bank or through the dealer.
Get a written agreement
Once you’ve agreed on a price, it’s important to get a written agreement. This will help to protect you if there are any problems with the car later on. Following these steps should help you to negotiate a great car loan in New Zealand.
6 Simple Steps
- Research the going interest rate for the type of loan you are seeking. This will give you a baseline to start from when negotiating loan terms.
- Get quotes from multiple lenders. This will give you leverage when negotiating loan terms with a particular lender.
- Negotiate the interest rate with the lender. Be prepared to walk away if the lender is not willing to meet your desired interest rate.
- Negotiate the loan term. A longer loan term will result in lower monthly payments, but you will end up paying more in interest over the life of the loan.
- Negotiate the repayment schedule. A shorter repayment schedule will save you money in interest, but you will need to be able to afford the higher monthly payments.
- Get everything in writing. Once you have agreed upon the loan terms, make sure that everything is put in writing so that there is no confusion later on.