One of the most common myths is that buyers must finance their cars through the dealership. According to Billy, that is not true. Buyers can and should secure pre approval from their bank or credit union before they ever visit the lot. This gives you full control over interest rates and lets you negotiate from a position of power.

Dealerships often push their own financing because that is where they earn profit. But walking in with your own financing ready changes the game. You already know your exact budget and can say no with confidence if the terms don’t suit you.

Billy says yes, absolutely. He recommends doing everything remotely except the test drive. From pricing to loan approval, it can all happen through phone or email. Ask for the out the door price, which includes every fee, and negotiate calmly from your living room instead of under showroom pressure.

He also warns about extra charges like pre delivery inspection fees or reconditioning fees, which are often already included in the car’s price. These add ons can be declined or negotiated away. And when it comes to refinancing, don’t wait. Some dealerships urge buyers to delay refinancing so they can keep their commission. But waiting can reduce your car’s value and hurt your loan terms.

Billy reveals four more key tips:

• You are not required to accept overpriced add ons like extended warranties or tire protection. These are optional and negotiable.
• Always contact multiple dealerships. Identical cars can vary in price depending on the seller.
• Never announce upfront that you are paying cash. Dealerships often prefer financing customers and might reduce your discount if they know you’re not financing.
• A good credit score affects your interest rate, not the vehicle’s price. So don’t assume it gives you extra bargaining power.

Experts at Consumer Reports agree with these points and also recommend putting down at least 15 to 20 percent as a down payment to reduce your loan balance and interest.