See all articles


What happens when they go into a car dealership? The first thing you hear is:

“Congratulations. You’ve successfully negotiated the purchase price of your new or used car. You’ve made a great deal!”

Next you’re ushered into the dealership’s ‘General Managers Office’ where you’re introduced to a pleasant, well-groomed man or woman who congratulates you on your purchase. They reassure you that you made a wise decision and that the tough part is over so now you can relax. You sit and breathe a welcome sigh of relief.

The Manager will go through the formalities of the various forms relating to the vehicle purchase and some financing terms. Along the way they will offer several ‘extras’ such as an extended warranty, car insurance, gap insurance, perhaps even disability insurance. What you had in mind to spend at this point can reach new heights within minutes of taking a seat.


If you’ve ever bought a car from a dealership yourself, this probably sounds all too familiar!

You’re relaxed, the negotiating is over and your guard is down making it easy to be swayed into purchasing the next add on.

Meanwhile you’ve been told that you’re getting a ‘really low rate’ and that the finance has been approved before you’ve even stepped out of the dealership!

Car dealerships make more gross profit from the extras than they make in the actual sale of the car. And they’re experts in denying the customer the opportunity to shop around for a loan to make sure they’re getting the best deal.

This is where it pays to know a good finance broker who can help you combat the dealers by setting up pre-approved financing even before the shopping starts, helping to keep the finance away from the dealership.

Remember Managers at car dealerships are not governed by ASIC, giving them freedom to say and do whatever they like to close the sale even if it means pushing the boundaries of what’s ethical. They are experts at earning your trust and applying subtle pressure.

Here are some tips:

  • Try to setup a pre-approval with your finance broker prior to purchasing a car. It takes 5 minutes and the process is very straight forward. By keeping the transactions separate, you’re giving yourself the best possible chance of saving money. Your finance broker is the professional in the finance space and they’re the professionals in selling cars.
  • Don’t let your guard down in the Manager’s office – no matter how friendly they may come across, they are in that job for one purpose and one purpose only – to empty your pockets!
  • If you get told ‘a rate’, it’s likely that it isn’t accurate. Make sure you have the actual payment amounts – dealers are very good at saying what people want to hear because they will probably not represent a true rate when it comes to doing the math.
  • Make sure that you understand all of the additional fees and charges that are going to be part of the dealership finance. Managers can conveniently ‘forget’ to tell you about the establishment fees or account keeping fees, or worse still simply lie about it.


Total finance solution
Your finance broker may have already helped you in making the biggest purchase of your life, your house. Why would you not trust them to assist with the next big purchase – a new set of wheels? It’s a great opportunity to provide you with a total financial solution and different options.

With access to a panel of lenders and instant accreditation, you will get a more competitive rate than the dealership with all of their hidden costs!

Want more information on how dealership financing works?

For an honest and unbiased opinion, talk to Think and Grow Finance today on 03 8390 5855 or email