Buying a new vehicle is a big decision. If you're in the market for a new car, make sure you choose the right car and deal for you. Mountain America Credit Union has some tips to help you cruise confidently through the car-buying process.
Do your research
Knowing the lay of the land is essential. Shop around online and decide what kind of car you want. There are many options to suit a variety of lifestyles and price ranges, so it's best to narrow down your search to a few different makes and models.
NADA, KelleyBlueBook, Cars.com, Edmunds, and AutoSmart provide free reviews and owner ratings on just about every vehicle. Run a car history search on sites, such as AutoCheck, using the Vehicle Identification Number (VIN) of the specific cars you're interested in.
Review your credit before shopping
Credit scores play a vital role in determining whether you get approved for a loan and the interest rate. Get a free copy of your credit report annually from each of the three major credit reporting bureaus—Experian, Equifax, and TransUnion. If you bank with Mountain America, you can access your score for free* on their online branch or mobile app.
Checking your credit score early in the car-buying process gives you time to correct any errors or inaccurate information you may find. Keep in mind, your score may be impacted after financing your auto loan.
Research your financing
Dealership financing is easy, and sometimes your best option. However, make sure you are getting the best deal by reviewing it carefully, including the terms and conditions associated with your financing.
When negotiating
Don't overshare. If negotiating for your car makes you nervous, keep in mind that sometimes it's better to say too little than too much. You don't have to reveal what you can afford each month right away to a salesperson. Not doing so can help you retain more leverage in the negotiation process.
Do the math.Compare offers carefully before making a final decision. A deal may look great at first, but could have hidden fees or other negative terms and conditions. It's a good idea to calculate how much interest you'll pay over the life of the loan. An auto loan calculator, like Mountain America's, makes the process easier. You can even compare and contrast loan amounts, payments, terms, and rates.
Be willing to walk away from a deal. You don't have to take the first offer you receive. You always have the option to negotiate. Stick to what you decided to spend. You choose what terms and prices to pay at the end of the day. If the seller doesn't want to meet your desired price, be prepared to walk away (on good terms, of course). Let the dealer know that they can contact you if they decide they want to negotiate again further.
Understand the total cost of car ownership
It's more than a sticker price.Once you feel like you've found the right car for you, it's easy to let your emotions take over and forget about the trust cost of vehicle ownership. When figuring out how much your new wheels are going to cost you, over time, your monthly payment isn't the only thing to consider. Ongoing costs—like insurance, gas, taxes, and maintenance—must be factored in as well.
Do your research and add these costs to your calculations.
Mountain America Credit Union can help people with vehicle purchases through various products and services, including personal financial coaching sessions and webinars.
Visit macu.com/guide to see what they can do for you.
*FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. FICO Score available to primary members only
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