The 1st mistake many consumers make when purchasing an automobile is to buy their car based on the payment rather than the bottom line or the price of the car. This is usually done when you need transportation, know how much you can afford a month for the next few months and then look to make the car fit in that range.

Now the concept is not that bad, you should be on a budget and follow it. This is so you do not pay out more than you take in. The trouble is that many let the their “friendly” car sales person in on their plans. This is not the person that has your best interest at heart. He or she is trying to get you to pay more so he or she makes more.

How often when you get on an dealership’s lot that the sales person asks either or both of these questions? How much were you planning to spend? or How much did you want your payment to be? The answer should be a two questions from the consumer of “How much does the car invoice for? and What do you think is a fair commission for selling the car?

You’ll more than likely pay more if you negotiate on payment rather than price. Since any amount divided by the right number of months can equal your monthly payment. You’ll pay longer and much more in interest.