Auto Buying 101

This presentation does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or

damage due to the reliance on this material.

© Communication Federal Credit Union

Things Consider Before You Buy

• Size & Practicality– How much can I afford?– 20% Rule

• Online calculators – http://www.comfedcu.org/auto– http://www.edmunds.com

• New vs. Pre-owned• Depreciation factors

Pros & Cons

• Dealerships vs. Individual– Advantages Dealer - Selection, hours, certified pre-owned, trade-in

ability– First Rate Autos (firstrateautos.com)– Advantages Private Seller – Low price, no dealer markup, low key

negotiations, owner has service records

Research

• Research dealerships• Ask friends for referrals for dealerships and autos• Resources (consumer reports, the car book, autotrader.com &

Edmunds.com)• Get an insurance quote before you buy• Request a vehicle history report

Helpful Websites

• www.samarins.com • www.carfax.com ($40 - unlimited car search)• www.autotrader.com• www.carsurvey.org• www.recalls.gov• www.dmv.org• www.nhtsa.gov• www.consumerreports.org

Financing Options

• CFCU simple interest loans (pre-arrange before shopping)– Auto Equity Loans

• CFCU AutoSmart option• Dealership

CFCU Additional Offerings

• GAP• Debt protection• MBP

– New & pre-owned options from CFCU

Understanding Auto Shopping Terminology

• Loan term– Costs per thousand– Which term fits your needs?

• Interest rate• Down payments• Rebates• Title and registration costs

Understanding Auto Shopping Terminology

• Trade-in values– Know your car’s value before you go in (autotrader.com & nada.com)– Be prepared to sacrifice some price at dealerships

• Amount owed on trade-in• Warranty• Rebates• Insurance (get your insurance quote before you buy)

Auto Buying Tips & Tricks

• Shop on Sunday• Use auto loan calculators to determine payments and how much

you can afford• Request an afternoon test drive• Call CFCU to determine fair market value of vehicle• Do not make an impulse decision• Shop at least 2 dealerships and ask both to give you the best deal

in writing. Compare prices and sleep on it.

Auto Buying Tips & Tricks

• Buy at the end of the month• Don’t use any lender that uses the Rule of 78 for calculating

auto-financing interest• Check with the CFCU for any questions you have. We are here to

help.

Test Drive Tips• Paint and damage• Walk around and inspect• Doors, trunk, lights, heater and air conditioning• Comfort and legroom behind the wheel• Good visibility• Controls and gages• Turn off radio and listen to the engine while driving• Check for acceleration from a stop• Check for passing acceleration & cornering• Any doubts, take to a mechanic• You can request an afternoon test drive

Closing The Deal

• Know the numbers• Be ready to walk away• Make a low but reasonable offer then increase by small

increments

Q & A Time

Thank You For Coming!

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