Buying a vehicle can be stressful but knowing is half the battle! Here are a few vehicle buying tips to add to your game plan:
- Reinvest positive equity –
You can actually use the money that you have put into a current vehicle, to help purchase your next vehicle!
See an example of how one of our Members used the money they had in a current vehicle, to help pay off their credit card debt and were able to save over $17,000.00! (Click here to read the full story)
Ask for an invoice of the vehicle upfront –
The vehicle invoice shows the price the dealer bought the vehicle from the manufacturer for. Asking the dealer for an invoice before negotiating the price can help to make sure you aren’t overspending on a vehicle.
- Get preapproved –
Some dealerships may offer financing with an interest rate that is higher than you actually qualify for. Getting a vehicle loan preapproval can help avoid potentially inflated interest costs, which will save you more money overtime. A preapproval also helps you to know your budget before choosing a vehicle.
- Buy at the end of the month –
Sometimes buying a vehicle towards the last week of the month, the end of a sales quarter, years end, or on holiday weekends may incentivize car dealers to budge on the price tag, in order to hit their sales targets on time. This is more common for new vehicle sales, and may be based on the dealers own goals with the manufacturer.
- Make a down payment with a tax return –
Using large and unexpected amounts of income, such as a tax refund or stimulus check, for a down payment will shorten a loan’s repay time, with less effect on your regular budget. The larger the down payment, the more you will save on interest. The down payment should not be offered to the dealer until after a price has been agreed upon.
Have questions? Contact our loan representatives by email at loans@TrademarkFCU.org, or click here to apply online.