I Want a New Car. Now What?
With Memorial Day right around the corner, you can expect that car dealerships across the country will be reducing prices on their inventory to make way for new models. If you are thinking about purchasing a new (or new to you) vehicle, now may be the perfect time to score a great deal on your new ride! It may have been a while since you have done any car shopping, so you could have questions. Let me walk you through the process and what you might expect when you take the plunge into financing your new car.
Where should I look to find the right car for me?
No matter where you live, your dream car is within your reach. You can visit any dealership that you want to – local, out-of-state, or online. Consider listing the features and specs that are a “must-have” and which ones you can live without. If you plan to purchase a new car, you can check all of the boxes to find a car nearby, or build one that meets your criteria. If you want a used car, it may be worth your time to use an auto locator tool. Online dealerships, like cars.com and carvana.com, are a great way to shop for affordable used vehicles that won’t break the bank.
Some important things to remember if you are purchasing from an out-of-state dealership.
Every dealership is different. Some smaller lots will not accept all financing options.
You will be responsible for taxes, tags, and title work. This may mean that you will pay more for buying a car in one state and transferring it to another.
Larger dealerships with multiple locations will usually be happy to transport a car from one county to another. There is typically a hefty fee for choosing this option, so remember to add that to your budget.
There may be different requirements to registering your new car in your state. Some states will not do so until the car has passed inspection or completed its emissions testing.
When in doubt, ASK! Your sales representative can help you figure out what needs to be done to secure the deal.
What is the process to financing my car with InFirst?
You’ve decided what you need from your next car, now let’s talk about the most important piece of the puzzle. Now it’s time to think about how you are going to buy your car. The process is daunting, but I can assure you that our loan officers have seen just about everything, and are they are here to make the process go smoothly and as painless as possible for you. Here’s how I recommend you start:
Get pre-approved. Submit your application ahead of time so you can work within the parameters of your approval. There is nothing worse than falling in love with a car that is out of your budget. Once you know how much car you can afford, shopping can be a fun experience.
With your pre-approval in hand, you are free to test drive cars. When you find “the one,” don’t be afraid to negotiate a deal in your favor.
*Here’s a fun tip – don’t talk about down-payment or trade-in options until AFTER you have negotiated the lowest price that you can get on the car. Only then would I recommend bringing those items into the equation.
Have the dealership forward your purchase order to your loan officer to be sure that the car’s value is in line with the selling price. This ensures that the car’s value is in line with what you will be paying (i.e., we want to know that you are getting a fair deal!). We pull a CarFax report on EVERY used car to make sure that it has never been in an accident or salvaged. Your dealership may provide you with a report, but if not, ask us and we will share that with you!
If all goes well, we can send your loan paperwork for electronic signature, and you will be driving away in no time!
What fees do you charge?
You’re a member of our credit union, so you already know that credit unions are not-for-profit financial cooperatives. That means we don’t charge the same fees that banks and finance companies do. Not only are you going to get an out-of-this-world interest rate (seriously, have you seen these Auto Loan rates?!?), but you won’t see “mystery fees” that seem to pop up on contracts all the time. If you are curious…
We DO NOT charge an application fee.
Do you prefer the peace of mind that comes with sending your loan check via FedEx instead of regular mail? We’ve been in your shoes. $30 will cover that cost.
We assess one small fee ($69) to ensure our lien is filed. Want to pay for that up-front? Cool. Prefer to add it to the loan? No problem.
Interested in GAP (Guaranteed Asset Protection) to protect your car in the event of a total loss? We’ve got you covered. Plus, we won’t charge you hundreds of dollars more. Make sure to always compare the costs at the dealer so you don’t overpay.
Considering an Extended Warranty? Let us show you how we can save you money on that.
Mulling over payment protection for life, disability, or involuntary unemployment? We can quote a plan that works for you. Don’t want to add it now? No worries, add it at any time you want.
Are you ready for a new or used car? I want to hear from you! Leave a comment below, or email me.
Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.
