If you’re in the market for a new ride this spring, make sure there won’t be any bumps in the road before you start shopping. Bill Berglund with UFCU was here with expert advice on your next car purchase. The goal at UFCU is to help you buy wisely and save money, not simply to sell you a loan. A seller’s objective is to maximize profit.
Step 1 – get preapproved with your financial institution before even thinking of shopping
- You need to be comfortable with the monthly payment (we recommend no more than 15% of your gross monthly pay – $2,000 a month = $300)
- Let your budget, not your emotions, drive the process
Step 2 – do your homework
- If shopping for a new vehicle, find out what the invoice price is, is shopping for a used vehicle find out what the Kelly Blue Book or NADA value is
- Find out if there are any rebates
- Is it safe?
- Is it reliable?
- Does it have good resale?
- Does it have damage?
- Has it had a recall?
Step 3 – keep the transactions separate
- If you have a trade keep that transaction separate – Why should the purchase price of the car your buying have any effect on what they will give you for your trade
- Negotiate the selling price (out of the door cash price excluding rebates, incentives or trade-ins – this price should include ALL dealer fees)
- Never negotiate the price of the vehicle based on the monthly payment
- If you are buying any additional products (Vehicle Service Contracts, Debt Protection, Guaranteed Auto Protection (GAP)) compare coverage and pricing
Step 4 – Slow Down and be prepared to walk away
- Compare offers
- Don’t be rushed
Whether you’re purchasing new or used or looking to refinance a vehicle, University Federal Credit Union offers the same low rates and flexible terms. You can apply online or give them a call at (512) 498-CARS (2277). UFCU is always hosting helpful seminars on a variety of financial topics. Visit UFCU.com or give them a call at (512) 467-8080 for more information.
Sponsored by UFCU. Opinions expressed by guests on this program are solely those of the guest(s) and are not endorsed by this television station.