Being walked into the dealership for the first time is like being walked into the casino where a dealer knows all the rules while you have just learned about the loan five minutes ago. It is indeed true since the rate of interest that they place on your contract determines whether you buy a car or help somebody on vacation. Finance office is where they make money, not on the hood ornament. You should be prepared to defend yourself.
First of all, before you even decide to go into the dealership, you should find out about your credit score. If you have never had any loan or credit card, your record will be very thin, and banks will regard you as a risk. Various websites such as Credit Karma and Experian will help you learn about your financial situation.
The thing is that you should get pre-approved for a loan in your own bank or credit unions such as PenFed or Navy Federal. Taking the loan from the bank with you changes the whole picture. The dealership should try to get you a better deal in order to attract you to their side, otherwise, you will take the loan from the bank.
When the finance manager provides you with the contract to sign, do not think about the monthly payments only. Dealerships always try to stretch the loan for seventy-two or eighty-four months in order to lower the monthly payment and raise the interest. Think of the cost of the loan and APR. If it seems strange to you, then you should ask about the explanation of everything.
It is alright to act a bit awkward and just sit quietly when the rate is higher than it should be. Salespeople feel uncomfortable when there is silence and they try to change their minds to break it. It is alright to tell that you want to think about it tonight although you love the car. Walking out of the dealership is the most powerful strategy that you have.
Besides, you might be pressured by the fact that the deal will expire. However, you should not let it pressure you since it is just another common sales tactic. You should not be rushed since your five years of saving will pay off. You made the money and you should not be ashamed of saying no to a bad deal.