More about Car Dealers’ Tactics – You may be pressed by the salesman or finance “specialist” for the monthly payment that you can afford. They can meet almost any target by simply raising the residual value, and it could come back to bite you.
Rule of Thumb: you’re at risk if you take more than 40% on a 3-year term, 30% on a 4-year term, or 20% on a 5-year term. Trust your broker, because given the chance, the dealership will take advantage of any opportunity with their finance.l