Who is the Dealer's Finance Manager and Why Do I Need to Know About Him?

If you have dealt with a dealership, you know that there are a whole cast of characters involved, ranging from a manager to dealers. If you have made it though the negotiating process of buying a car and are at the stage where you are talking about money, you are introduced to the finance manager, the person who in most cases arranges loans, talks credit history and takes care of financial arrangements. The most important aspect of the finance manager's job, in most cases, is the arranging of loans - which is how he makes money for the dealership and for himself. He is an important person to deal with effectively when buying a car because how you deal with him can cost or save you thousands of dollars.

What Does the Finance Manager Do While You are Buying a Car?

When you buy a car, you will be asked by the car dealer several times how you will be paying for the car. If you say that you will need financing, the finance manager will start to look for a car loan for you right away. As you approach the finishing stage of buying a car - financing - you will be led to the finance manager's office. There, the finance manager will enthusiastically tell you that he has found a great deal on financing for you. What you don't know is that they have often inflated the interest rate a bit. It is a completely legal practice and helps the dealerships make money. Since they are helping you finance your car while you are buying a car, they are performing a service for you and this hike may be justified that way, as well. In some cases, finance managers will also claim that your credit score is quite low and will suggest that the only way they can finance you is if you purchase warranties or insurance along with the car. The money made from these products and services naturally add to the coffers of the dealership - and pay the finance manager's salary.

How a Credit Report Can Help You Talk to a Finance Manager

When dealing with a finance manager, it is useful to have at least two pieces of information: Your credit history and rating and current loan rates. That way, you can negotiate with the finance manager. Before buying a car, you should check your credit score on services such as TrueCredit.com, CreditReporting.com, MyFICO.com, and OnlineCreditInfo.com. These services can quickly give you your credit score and a credit report, which you should carefully check for errors and misrepresentations. When you are actually buying a car, no finance manager will tell you exactly what is on your credit report or what your actual credit score is; having this information means that it can't be used against you to raise your financing rates. Similarly, researching current bank rates for auto loans will allow you to note when a finance manager notes a rate that is too high. Over time, even a one percent hike in interest can cost you thousands of dollars, so you may want to be vigilant.

Dealing with a Finance Manager While Buying a Car

When dealing with the dealer's finance manager, you have two options. You can negotiate with him or her based on your knowledge of your credit score and your knowledge of financing rates. While many finance managers will make it seem as though the rates they offer are non-negotiable, now that you know that they make their money by hiking rates, you know that is not true. You should be especially leery of finance managers trying to sell you extra services and products you don't need. Ignore the shocked look on his face and say "No" if you don't need a service or product. Your second option when buying a car is to bypass the finance manager altogether by arranging a loan before you actually start the process of buying a car. This can be less convenient, but can save you money unless the dealership really can offer a splendid financing deal.