It’s hard to ignore the fact that car prices and interest rates are out of control. So, what can drivers do if they need a new ride? Well, you can use this advice about how to avoid being taken advantage of at the car dealership. 

Three things to never say at the car dealership 

TikTok user @the1mr_gratitude is here to help during the worst car market crash we’ve ever seen. He has three helpful tips about what not to do to protect yourself at the car dealership. 

1. Don’t bring up financing 

Don’t talk about money or how you’re going to pay for your new truck or SUV. Show up with a pre-approval from your credit union or bank. 

This way, you can avoid dealer financing, which might save some time during the buying process. 

2. Don’t say you like the car 

I know that standing near a really cool car or luxury SUV can be exciting. Sometimes the joy is difficult to hide. But you want to hide those feelings from the salespeople. 

Hold firm, don’t be desperate. Be a teenager about it, meaning pretend you don’t give two craps about it. The more you like a vehicle, the less likely it is that the dealership will negotiate with you. 

3. Never put a down payment on a car 

That sounds crazy! But he explains to never talk about how much you can put down. Putting thousands of dollars down only saves $18 to $20 a month. 

It’s not worth it; save your money. This is especially important if you have good credit and can afford the payment. 

I’ve reached out to the1mr_gratitude to see if he has any tips about what you SHOULD do. 

Should you avoid car dealership financing? 

There are some pros and cons to dealership financing. According to Spero Financial, dealerships might have access to direct deals and promotions offered by automanufacturers. 

Some automakers have their own lending services like Ford Motor Credit and Toyota Financial Services. Promotions could include super-low interest rates. But dealerships may inflate interest rates to earn a commission from lenders. 

Financing through a bank may lead to higher interest rates. But you can get a better deal that best aligns with your budget and credit with an actual representative to talk to. 

Should you put a down payment on a new vehicle? 

Putting a downpayment on a new truck can lead to lower monthly payments, reduce interest paid overtime, a shorter loan term, and improved chances of loan approval. 

However, it could also deplete your savings and leave you without a rainy day fund. It might not lead to a lower interest rate either. 

Sometimes lenders might not offer financing if your down payment is too large due to minimum financing standards.