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CU Direct Connect wants you to be successful at buying a car. That is why we have provided you with a step-by-step plan to empower you with the information needed to be confident when you walk in to the dealership.
The key to being a successful car buyer is to know what to look for and check all the possible background resources. Once you know what you want in the price range you can afford, don't settle for less. Invest the time and effort in researching cars and you will see the rewards in the end. The CU Direct Connect Auto Resource Center provides many of resource tools discussed in the plan below - making the Auto Resource Center a free and safe place to start your research.
In too many cases people choose a car because it has an eye-catching style or it is a trendy favorite. If you go in this direction, you may either break your budget or have to go car shopping again.
Let your needs, not your wants, drive your decision. Here are a few questions to keep in mind when you begin your car-buying process:
- How many people do you need to transport?
- How long is your commute? Is it important that your next vehicle get good gas mileage?
- What kind of driving do you do most often?
- Do you want a manual or an automatic transmission?
- Do you really need four-wheel drive? Or all-wheel drive?
- What safety features do you want?
- Do you require a lot of cargo-carrying capacity?
- Will you be doing any towing?
- Will the car easily fit in your garage or parking area?
Regardless of whether you decide to buy or lease your next car, establishing a realistic monthly payment that will fit into your budget is a crucial first step. A rule of thumb is your total monthly car payments - whether you own one car or more than one - shouldn't exceed 20 percent of your monthly take-home pay. Check the Auto Resource Center payment calculator to determine how much a payment will be before you start shopping. Print out the result and put this information into your car buying folder. It will not only show you what you can afford, it will also help you control the numbers when you negotiate with a dealership.
Today's new car and truck market is filled with great products. Most shoppers have difficulty keeping up with all of the vehicles manufacturers introduce and the changes they are making to their older vehicles, so it's important to do your research. Check out all the options for vehicles in the class you are interested - this will not only help you determine where to start shopping, but also help narrow down what you are looking for. A good place to start looking is through Consumer Reports. These can be accessed through most libraries or on-line. They give you an overview of all the vehicles in the class of interest including reports on reliability, owner satisfaction, repair needs, and much more. Other car and truck magazines are also good ways to learn about the options available and see pictures of the vehicles as well.
Here is an often overlooked fact of car ownership: one car might be cheaper to buy, but more expensive to own. Why? Even if two cars cost about the same to buy, one can depreciate at a different rate or cost significantly more to insure or maintain. Before you commit to one car, you should estimate the long-term ownership costs of the vehicle you are considering. These include depreciation (the amount you can get for the vehicle over time if you were to trade it in), insurance (different vehicles cost more to insure - call your insurance agent to find out more), maintenance and fuel costs.
By completing steps one through four, you should now have a good idea about what kind of vehicle will work for you. Maybe there are several vehicles that fit your criteria. It's time to narrow it down.
Car buyers have been trained to visit local dealerships to find the car they want. However, now you can quickly cover more ground by shopping on-line. Using the CU Direct Connect Auto Resource Center, you can search the inventories of dealerships around Colorado without even leaving your home. See if they have some of the options you are looking for and what they are charging for it. In most cases of used cars, the mileage will be listed making further research on the vehicle possible. The only things you have to do in person are test drive the car, negotiate the price, and sign the contract.
If you are shopping for a used vehicle, make sure to use the NADA link and the Lemon Finder link on the Auto Resource Center to learn more about the vehicle. NADA will provide both retail and wholesale used vehicle prices - helping you decide if the dealership is asking too much for the vehicle or not. Make sure to write this information down so you have a baseline to bargain with when you actually go to the dealership to take a look at the vehicle.
The Lemon Finder tool will help you to learn the history of the vehicle. You can find out if there are any hidden, costly problems with the car. Knowing the history of a vehicle is key to your long-term investment and could help make a decision down the road.
For new cars, the Auto Resource Center also allows you to build a car by selecting the specific make, model and options you desire. You can then view the invoice price and MSRP (Manufacturer's Suggested Retail Price) of the vehicle you want and you can compare this to the price you negotiate at the dealership. This will help you determine if you are paying too much for the vehicle or not. Ideally, you should be paying somewhere between invoice and MSRP for the vehicle - and the closer you pay to invoice price, the better.
Once you find a vehicle that you would like to test drive, simply e-mail a request to the dealership by clicking on the "I'm Interested" icon at the bottom of the vehicle page in the Auto Resource Center . An e-mail will be sent to the dealership and a salesperson will get back to you and confirm the date and time for your test drive.
The goal of a test drive is to experience - as closely as possible - the same type of driving conditions the car will be used for after purchase. If you commute, drive the car in both stop-and-go traffic and at freeway speeds. If you frequently drive into the mountains, try to find some steep grades to climb. Drive over bumps, take tight corners at aggressive (but not dangerous) speeds and test the brakes in a safe location, such as a deserted parking lot. Get in and out of the car several times and be sure to sit in the backseat, especially if you plan on carrying passengers. In short, ask yourself what it will be like to live with this car for a number of years.
While you are evaluating the car, don't be distracted by the salesperson. Don't drive with the radio on - you can evaluate that later. A new car is a big investment so make sure you spend enough time really looking at it. And then, consider one last thing: your intuition. If you are uneasy about this car, follow your instincts. A vehicle purchase decision is too important (and expensive) to undertake without total confidence. Remember, you are the customer and deserve to take all the time needed to make sure you get the car you want.
It's a good idea to do all of your test driving in one morning or afternoon. Driving the cars back to back will help you uncover even minor differences, which will lead to a more educated purchase decision.
At this point you should have considered all the cars in the class that interest you. You should have a good idea of what you can afford. You should know if you want to buy or lease your next car. You should have test driven your top choices.
Now it is time to make the deal. Return to the dealership where you found the car of your choice and work with the salesperson. Remember what you can spend and what the car is worth - then stick to that. Also, remember that financing through your credit union is available. Tell the salesperson that you are a credit union member and that you would like to get your auto loan through the credit union.
The dealership will also offer you a variety of insurance options. For more information about some of these options, visit the insurance section of this site.
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