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Car Buying Made Easy By Members Credit Union

Car Buying Made Easy By Members Credit Union

Welcome to car buying made easy brought
to you by Members Credit Union.(Car Sales person) Oh look, there’s another, (coughs) customer on the lot. So
what do you think? it was great right? I mean the car has an awesome sound system,
chrome rims, leather seats, the Premium package,
you know everything a young person like yourself is looking for! I bet I can even
get you in a payment that’s like, $100 a month! How do you like that? (Car buyer) $100 a month?
Really? You can get me in that car for only $100 a month? Man that sounds great!!
(Car buyer) So I went down to the car dealership and they told me they can give me a car for
$100 a month in my payment. Is that a good place to start? (Loan Officer) Since this is the
first time you’ve shopped for a car let me assist you and give you some guidance
that will help you make this purchase as easy as possible. The first step is to
check your credit. Knowing where your credit stands is important. Your credit
report will play a vital role in the interest rate you’ll pay on the loan. (Car Buyer) So
the better your credit score the better the interest rate? (Loan Officer) Yes. A high credit
score can help you get a low car loan rate which will save you money on
interest. The next step is to pick out your payment. Only you know what your
financial situation is. Take a good look at your budget and determine what amount
you can afford each month for that payment. (Car Buyer) So how long should I finance my
vehicle? (Loan Officer) Car loans typically come with a four, five, six, or even a seven-year term.
Keep in mind that the longer the term, the longer you will be likely to be
upside down in the loan. Being upside down in the loan simply means that you
owe more than the value of the vehicle. The third step in the car buying process
is to get pre-approved. In today’s world, there are many ways to shop for a
vehicle: online, in person, auto buying services and more. Knowing that you
already have been pre-approved for a specific amount to spend,
will help you when you look for your vehicle, so that you look in your price
range. (Car Buyer) What if I don’t spend the entire amount I was pre-approved for? (Loan Officer) You can
always spend less than the amount for which you are pre-approved, but you can’t
spend more unless you want to make up the difference in cash or about trading
in your current vehicle. If you spend less than the amount pre-approved, you
won’t get this back in cash but you will get a smaller loan. (Car Buyer) What happens if I
don’t have great credit? (Loan Officer) You may still be able to get a pre-approval for a loan
with bad credit, but the interest rate will be higher. If you’re a first-time
borrower and have no credit history, you can either get someone to co-sign for
you or consider a lender that will work with first-time borrowers. (Car Buyer) What do I need
to do to get a pre-approval? (Loan Officer) When you arrive at the credit union to get your
pre-approval, it’s a good idea to have your two most recent pay stubs on hand
so the loan officer can review your pay history. You will also need to have your
driver’s license. Later in the loan process you’ll need to have your
insurance information as well as a bill of sale and be able to answer a few
questions about your monthly bills, once you found the vehicle that you wish to
purchase. The fourth step is choosing your vehicle. Once you’ve received your
pre-approval, you can get serious about shopping for your new car. One of the
great benefits of having this pre-approval is you can focus your
efforts on negotiating the best deal for your vehicle. (Car Buyer) Do dealerships negotiate on
their prices? (Loan Officer) Many dealerships nowadays do not negotiate prices on new or used
vehicles. Dealers may be able to make a deal on financing though.
Just be careful. Many times they will talk you into a longer term which will
reduce your monthly payment, but will cost you more in the long run. (Car Buyer) What if I find
a vehicle that is not at a dealership? (Loan Officer) If you’re going to buy a vehicle from a
private party, make sure that your loan option or pre-approval will cover that
transaction. Sometimes, there are added limitations to these types of
transactions. The fifth step is finalizing the paperwork. Once you have
chosen your vehicle and negotiated the price, you will coordinate with your
credit union to finalize the loan. The dealer will likely try to get you to buy
add-ons like extended warranties, VIN etching, paint or fabric protection, etc.
Be sure to research these ahead of time, so you don’t feel pressured to make a
quick, uninformed decision. The final step is making your car payment. After the
sale is finalized, you’ll get information from your credit union about your
payment schedule. Some will send you a coupon book or a monthly statement and
others will tell you the due date and it’s up to you to make sure that you
know when to make payment. Signing up to access your account online is always a
good idea. Having access to your account online allows you to see your account
balance, previous payments, and payment due dates. If you have a checking or a
savings account many times you can make your loan payment electronically online
through your online access. (Car Buyer) This is great information. Is there anything else I
should know? (Loan Officer) One last thing. Almost every car loan
allows you to prepay without penalty, so if you decide to pay off your loan
faster you can do that. In most cases this will save you money in the long run
by reducing the amount of interest you’ll pay over the life of the loan. Be
sure to check with your credit union to make sure your additional payments are
processed correctly. (Car Buyer) Great! Now I have the tools to purchase a
car the right way! Thank you for watching Car Buying Made
Easy brought to you by Members Credit Union. For more information, please visit
our web site at or give us a call at 1-800-951-8000.

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