There are car dealers who are ready to do anything to get your monthly payments as high as possible and make more profit. It is common for car dealers to misquote and inflate monthly payments. For example, they may say a $400 a month car payment for 5 years is a 9% interest rate. In fact, it is not and probably is higher than 9%! It would be a good idea not to trust the car dealers finance manager to calculate the interest rate and monthly payments for you. Also make sure you see everything in writing, including the down payment, the correct amount of money you are borrowing and so forth. On the other hand, it is still safer to get an independent third party, like your bank, to correctly calculate your car dealer’s proposal before you sign on the dotted line.
Moremore, beware of overpriced, costly options. They may significantly inflate your monthly car payments. If a salesperson says a particular option if free, odds are you cannot believe it.
