How To Buy A Car With Ease

Fall is the best time of the year to buy a new vehicle. By October, most dealerships are making room on their lots and in their showrooms for the next year’s new models. That usually means they are willing to sell what is already on their lots for a lot less money. Take advantage of that savings. If you are willing to shop around, you may drive away with a 2011 vehicle at a 2010 price.

Many people often give up a good deal, because they don’t like to haggle for a good price. They consider buying a car a hassle. If you arm yourself with the right information, you can be in control of the car buying process.

First, get pre-approved for an auto loan. At most credit unions, this is as easy as applying for an auto loan, but not applying for a specific dollar amount. Your credit union will tell you how much you qualify to borrow. Use this as a bargaining tool. It’s pretty hard for a salesperson to haggle with you when you have a limit on what you can spend. It also gives you a price range so you can start shopping.

Second, do your homework. Shop online. Decide what size vehicle you need and what features are appealing to you. Narrow down your vehicle picks to two or three, then read reviews on all of them and see which, if any, received high safety ratings and other industry recognitions. When you know exactly what you want, it’s hard for a salesperson to sell you something different.

Third, get a price quote online. Many dealerships offer this service, and it gives you the control of letting dealerships compete for your business. If they call you with a quote that isn’t favorable, let them know another dealership quoted a lower price and ask them to make a counter offer. You can shop multiple dealerships without leaving your home or office.

Fourth, do the math before you accept special dealer offers, like $199 a month to lease a vehicle, zero percent financing or cash rebates. Leasing a vehicle may be a good deal. Just know there’s a balloon payment at the end of that note, which will need to be paid in full or refinanced, leaving you to pay even more interest.

When dealers offer low-rate financing, there often are conditions attached. The low rate usually applies to specific models, or for specific terms – usually 36 months or less. If you’re in the market for that specific model, or you can afford to pay off the loan in three years, this could be a good option for you.

Cash back incentives can either stand on their own, or they can be tied to a condition like purchasing a specific model or financing with the dealer. Ask before you get your heart set on a different model.

If you have the choice between cash back or dealer financing, think about taking the cash rebate and financing your vehicle at a credit union. That puts money back in your pocket and gives you an option for affordable financing. Neighborhood’s rate is only 2.99 % APR right now for loan terms up to 72 months.

Finally, use a credit union to shop and finance a car. Many credit unions, including Neighborhood Credit Union, have relationships with dealers who offer members-only deals. Plus, you’re borrowing money from a trusted source. That, alone, is peace of mind you just can’t buy anywhere.