Insider Tips for Buying a New Car
Buying a car is a notoriously difficult process. You may need to test drive a dozen or more vehicles before you settle on the right one; then, it’s time to negotiate a fair price with your dealer. To avoid being taken advantage of, you should work with your local credit union and familiarize yourself with a few insider tricks:
Sell Your Old Car Yourself
Many dealerships will offer to trade in your old car and use its value to help defray the cost of your new vehicle. While trading in your vehicle may be convenient, it’s unlikely that your dealer will honor the vehicle’s full market price. To get the most out of your old vehicle, experts recommend selling the vehicle yourself, then using all or some of the money for a down payment on your new vehicle.
Research Vehicle Value
Dealerships sell vehicles for slightly more than their retail price in order to make a profit. Some dealerships assign a sticker price that is well beyond the vehicle’s invoice with the hope that the consumer will pay full price and be none the wiser. To avoid falling into this trap, you should research the precise market value of the vehicle you wish to buy. You might negotiate for $200 above the invoice price and work on an agreement from there.
Seek Financing Elsewhere
If you can’t buy the vehicle outright, don’t finance with the dealership. Even if you negotiate a great initial price, the dealership may try to stick you with a high-interest auto loan. To find an interest rate you can live with, you should get an auto loan from a third-party lender . A local credit union is a great choice, as large corporate banks, like dealerships, are out to make a profit.
To learn all about fair and easy auto financing, call GCS Credit Union at (618) 797-7993. Our O’Fallon credit union is dedicated to providing straightforward and reasonable banking services—from checking accounts to retirement planning. Visit our website to find out what we can do for you and your family.