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SAVE MONEY BUYING YOUR NEXT CAR!

How does it work?

First you find a car that you wish to buy....

You go on the test drive, then you come back to the dealership, and the negotiations begin.....

They whip out the "four square worksheet" and the numbers fly... he goes and talks to his manager... and finally you have this....

car dealership four square grid

Is it a good deal?

You do something he is not expecting... you whip out your cell phone and visit DealerZAPPER.com. First you figure out your finance amount. This is generally the price of the car, minus the trade in and down payment, PLUS the amount it takes to pay off your old car. In the above example, the finance amount would be 21939.

DealerZAPPER.com is designed to work on many cell phones. This is why the home page looks crappy if you are using a desktop computer.

In the example above, the quoted deal is $469 a month for $60 months. DealerZAPPER.com tells you the interest rate is estimated at 10.26. This is probably a bad loan unless you have bad credit. The dealer is hoping you do not figure out that this is a bad loan, until you have signed the papers, and driven away in your hot new car.

Then the dealer will sell this bad loan to a bank, and make even more money.

Now that we know it is probably a bad loan, we can bring this to the dealers attention, and see if he is willing to work with us.

Now, suppose the dealer comes back with an offer of $435 a month for 60 months.

Now that is better. This time DealerZAPPER.com estimates the rate at 7.06% interest. Now you can safely drive away in your new car.

One way you can tell your savings is to look at the total of payments under the interest rate. The first one is 28140, the second one is 26100..... You can see by noticing the bad loan, and negotiating a better loan, you saved over $2000! which means you saved over $30 a month.

That is how DealerZAPPER.com works!

Try it Now!

BACKGROUND

This method of buying a car is called "payment shopping". Our tool is designed to help a payment shopper realize a potential bad loan early in the negotiations.

To avoid payment shopping altogether, you can contact a lender such as a bank or credit union before visiting the dealership. Then you simply shop the dealership based on the price of the car. Many lenders will give you a loan check or a lender letter to take to the dealership. If you have a loan check or lender letter, our tool will probably not help you much... since you already know the terms of your car financing.

Sometimes a buyer cannot or does not wish to obtain financing from an outside source and will arrange financing at the dealer. The dealer can sometimes use this as an advantage, because they only quote the payment and the loan term. A bad dealer knows that they are giving you a bad interest rate. They make money by selling these bad loans to the banks. A bad dealer can get away with this even more, because many buyers are only concerned about the monthly payment, so if the dealer can produce a payment that works, the buyer will not care that the loan is for ten years, or that the interest rate is 12%....

Finally, you must remember that once you sign the dotted line in the sales room, THINGS ARE NOT OVER.......!!!

You will then be taken to the financing room, to sign various documents. This is the dealers best opportunity to get you to buy more stuff, such as vehicle warranty / service plan, vehicle care package, gap protection, theft protection / etching program, and credit life insurance. These items can probably be had cheaper anywhere besides the dealers office. They simply generate more profit for the dealership... (and they do not have to pay their salesman on this profit! - this is called back end profit... the bad dealers best friend!)

ANYTHING YOU BUY WILL FURTHER INCREASE YOUR LOAN!!! BE CAREFUL!