Unity One Credit Union

Credit union informs: Foolproof tips for #firsttime car buyers

Fri, Aug 07, 2015 @ 04:11 PM / by Alyssa Guillory posted in car loan, #FirstTimers, Unity One Credit Union, first time car buyer

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Are you getting ready to purchase your first car? Here are 8 foolproof tips that can help you make the best deal possible:

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  1. Slow down! There are many emotions involved when you purchase a new car. By slowing down, you'll save money and hassle. 

  2. Don't depend on the car dealership to "educate" you on receiving the best deal. Car dealerships are in business to make a profit, not teach you how to get the best deal. Don't go near the car lot until after you've done your homework.

  3. Don't think you have to spend a fortune to get a good car. Buying used can save you thousands; just make sure to have it checked out by a mechanic prior to purchasing. 

  4. Check the price of insurance before you purchase. Did you know that in many states it can cost you five times as much to insure an eight-cylinder 2 door sports car than it does to insure the same car with a four-cylinder engine?

  5. If this is going to be your first major credit purchase, don't blow it! How you pay your first loan will determine the rate and terms on future purchases for decades. 

  6. Never purchase your car on the first visit to the dealership. All dealerships want to sell you the first time you visit because they make more money on the sale. Why? Because you haven't had the opportunity to compare their deal.

  7. Most dealerships make their profit on add-ons, not the purchase price of the vehicle. Make sure to explore all add-on options, especially GAP and Extended Warranty, through the credit union as our plans are often much cheaper.

  8. Talk to us before you shop. The minute you start thinking about purchasing a new or used car, stop by one of our branches and talk to us. We can provide you with valuable information about car buying prior to visiting the dealership. 

I would like to speak with a loan officer.

 

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Tips for First Time Car Buyers!

Wed, Jun 20, 2012 @ 08:51 AM / by Erayne Hill posted in credit unions, loans, first time car buyers, first time car buyer

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first time car buyer
It doesn't matter whether you’re a recent grad with your first real job or someone other than the typical first time car buyer, the car-buying process can be filled with an enormous amount of uncertainty. Check out these tips for some help:

Know what you can spend monthly. Do not purchase more car than you can afford. A good rule of thumb for first time car buyers is to add up all of your monthly debts and divide it into your monthly income. Do not go above 50%. If your auto payment is $250.00 and your other monthly debt is $750.00 then your total monthly debt is $1,000. Let’s say your monthly income is $2500.00. Divide one-thousand dollars by $2500 and your debt ratio is 40%.

Debt ($1000)/monthly income ($2500) = debt ratio (.4 or 4%)

Establish your vehicle needs. Purchase a vehicle that you need and one that accommodates your lifestyle. For example, you may not need the extra room from a large SUV if you are single. Consider the cost of gas and increasing insurance premiums. You can always rent these types of vehicles if needed or to satisfy your curiosity.

Do your research. Do not visit the dealership unprepared. Gather as much information as possible before going. Go online to www.carfax.com and get a report on your desired vehicle and get a carfax (www.carfax.com). This report will give you vehicle history like if the car has been in a collision. Knowing this may alert you to hidden costs. Also, you want to get information about the dealership. Visit the Better Business Bureau online and get reviews. Finally, try the old-fashioned way and obtain information by word-of-mouth.

Locate a convenient dealer. The dealership should be easy to access. Find a dealer with the most accessible staff with fantastic customer service.  This will be one of the most important transactions in your life as a first time car buyer; so, you will need as much assistance as possible.

Take a test drive. Virtually nothing is more important in your decision process than how you feel behind the wheel. How does the car feel when you are driving?

Determine your purchase price. Once you’ve decided what you like and have established what you can afford, it’s time to reach a purchase price. Visit NADA online at nadaguides.com, and get a retail price. Have this price with you once you reach the dealership. You do not want to pay over retail for the vehicle.

Secure financing. It’s always a good idea to have your financing secure before you reach the dealership; but if not, always check loan rates before arriving so you know your options as a first time car buyer. If you are a member of a credit union, check with your loan officer and take a pre-approval letter with you to the dealership.

ENJOY YOUR NEW RIDE!!!

Set up an appointment to talk with a member service officer about car loans right now by calling 1-800-628-5517.

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