Tag Archives: Car buying tips

Tips for Buying Your First Car

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Purchasing your first car is one of the most exciting experiences in life. However, it can also be overwhelming and costly if you don’t know what to do. Fortunately, we’ve prepared a short guide to help you with the process.

Do Your Research and Be Prepared

A car buyer’s best friend is information. There are many websites today that can give consumers data on the features and pricing of every vehicle available. Before stepping into a car dealership, you should know the vehicle you want to purchase and the price you’re willing to pay.

What you don’t want to do is to go to a dealership without having a financing offer. Many car dealers make much of their profit via their financing offices. This means they get a cut of any auto loan they get when their buyers accept. That’s why before visiting dealerships, you should get a pre-approved financing offer from a credit union. This way, your dealer will have to come up with a better offer if they want to make a sale.

Compare Prices from Different Dealerships

The various auto dealerships out there are not the same, even if they display the same exact makes and models. Most people start and end their car shopping experiences at the dealer that is most convenient to them, which can be an expensive mistake.

According to COX Automotive, 41% of car buyers only go to a single dealership when buying a new car. When you shop with just one dealer, you can’t make comparisons to know if a better deal is available to you. Just like any purchase, you should compare the prices of the same vehicle from different dealerships. Letting another dealer know that they have competition is often enough to make them strive to earn your business.

Don’t Be Pressured into Getting Costly Add-Ons

Apart from financing, dealers also make money by selling add-on products. Although some may be valuable, many of them have high markups and can be purchased at lower prices outside the dealership. Avoid being tempted to purchase these products since they’ll only add cost to your monthly payment. A good trick to get the real price of any add-on is to multiply the extra cost by the length of your auto loan.

Close the Deal the Right Way

If the pricing and financing look right to you, then it’s time to close the deal. Be sure that you review the contract carefully. Check to ensure that the numbers match what you have agreed upon and make sure there are no extra fees or charges. After signing the contract, the vehicle is now yours to drive.

Conclusion

Purchasing your first car is truly an exciting process. By following the above tips, you can get the car that you want without overspending. Also, be sure to ask your local credit union if they have a First Time Car Buyer’s Program. Here at First Financial, we absolutely do! This program allows our first time member car buyers to finance their first vehicle without a co-signer, as well as we offer terms up to 84 months.*

Learn more and apply online today!

*Not all applicants will qualify, subject to credit approval. No credit required, however no derogatory credit allowed. Rates are fixed and will be based on model year of vehicle & term. Maximum loan amount is $12,000 and minimum is $6,000. Not all applicants qualify for 84 month term, term will be based on model year of vehicle. No co-signer is required, but other terms and conditions apply to qualify for loan. Must meet all of the following underwriting guidelines for approval: Minimum 15% down payment, no previous auto loans, must be ages 18-30, minimum 12 months employment or employment contract, and debt to income ratio no more than 40%. Must provide 2 references, 2 most recent paystubs, and proof of insurance prior to funding. Enrollment in automatic payments is required. Applicants who close on a First Time Auto Loan, and post a selfie with their new car using hash tag #FirstFiFirstCar on Instagram, will be entered to win a $50 Visa gift card. Drawings are bi-annual (June 30th & December 31st). One winner per drawing. Winners will be contacted within 1 week of drawing. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean counties. A $5 deposit in a base savings account is required for membership. Other terms and conditions may apply, see credit union for details.

Source:

Cox Automotive 2019 Car Buyer Journey Study: https://www.coxautoinc.com/learning-center/2019-car-buyer-journey-study/

References:

http://info.academyforddealer.com/4-steps-to-buying-a-new-car

https://www.investopedia.com/articles/pf/09/best-price-on-a-new-car.asp

https://www.autolist.com/guides/cheapest-way-to-buy-a-car

Car Prices Hit a Record High, What Does this Mean for You?

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The average new car price hit a record high of $38,255 last month, according to JD Power. That’s up 12% from the same period a year ago.

If you’re out car shopping right now, be prepared to pay bigger bucks than usual for that vehicle. About two-thirds of car buyers paid within 5% of the sticker price last month, with some even paying above sticker price. That means there are fewer deals to be had and fewer negotiations taking place.

Why? Due to a computer chip shortage at auto plants around the world, car dealers are left with a fraction of the vehicles (both new and used) than what they typically have on hand. Since more people are buying used cars, they are also becoming as difficult to get as new cars.

Here are a few things to keep in mind if you’re in the market for a new or used vehicle right now:

  • Don’t expect a great deal: Don’t be surprised if the dealership only discounts the vehicle you’re looking at by a few hundred dollars, if anything at all.
  • Search outside of your community: Not finding what you want in your local area? Look at dealerships a bit further away from home. This can make a difference in getting the car you want or in hopefully getting a better deal.
  • Ask for top dollar for your trade-in: One bright spot is if you have a vehicle to trade-in, because of the shortage – trade-in values are at an all-time high. This can help cushion the higher sales price.
  • Hit pause: According to Edmunds, the vehicle shortages might last for another six months or so. If you’re not in a hurry to buy a car right now, their best advice is to wait a bit.

Are you still considering buying a new or used vehicle and need a loan? Click here to find out about a First Financial Auto Loan or get pre-approved to ensure you know where to start, what monthly payments you can afford and get the best deal possible for you.*

Waiting it out? You may be able to save by refinancing your current vehicle from another lender.** Click here to get started by filling out our online quick Auto Loan Review inquiry form.

Do you have a lease coming due soon? Another option is to keep the car you already know and love, by buying out your car lease.* Get started here.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

**Not all applicants will qualify, subject to credit approval. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a Base Savings Account is required to establish membership.

What to Know Before You Buy a Car

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Have you been considering purchasing a vehicle? Now could be the right time for you to buy, as dealerships and DMVs start to open back up in New Jersey.

Due to declining sales in light of the COVID-19 pandemic, dealerships are most likely highly motivated to sell vehicles right now – but you may not necessarily get the deal that is best for you. Our goal is to encourage you to do your due diligence and buy a vehicle that works for your lifestyle and budget. To help you make a smart decision, we’re providing a few tips to ensure you’re well-informed.

Know you have choices. Due to dealerships looking to make up for lost sales, they’re probably offering flashy, headline-making deals. However, once you take a look under the hood, the deals aren’t always as great as they can seem. For instance, a cash rebate is more likely to be a better deal than 0 percent interest when paired with a low-interest loan that can lower your monthly payment. Therefore, consider taking the rebate and finance or refinance your ride with First Financial!*

Consider your warranty options. When you’re buying a vehicle, whether new or used – dealers will try to sell you or automatically include add-ins like warranties to your loan. When buying a car, think of how long you plan to own it. If you trade or upgrade your vehicle often, you may not need an extended warranty. Typically, new vehicles come with manufacturer warranties that supersede any extended warranties. This means that your extended warranty has no value until the original manufacturer warranty expires.

If you plan on keeping your vehicle for an extended length of time, an extended warranty could be right for you. Compare the costs of the warranties the dealer offers with our Mechanical Repair Coverage options.**

GAP Insurance. GAP stands for Guaranteed Asset Protection. What is GAP insurance? It’s optional car insurance coverage that helps you pay off your auto loan in the event that your car is totaled or stolen, and you owe more than the car’s current value. This helps bridge the “gap” between what you owe and what your insurance is willing to pay. For example, say you owe $25,000 on your car but the actual value is $19,000. If you incur a total loss accident, your insurance will most likely only pay the value amount of $19,000. GAP insurance will pay the other $6,000 so that you are debt-free. Compare the GAP insurance from the dealership with our Loan Payment Protection options.

If you’ve made up your mind to purchase a vehicle, don’t be intimidated by the dealership. Take control of your car buying journey and get pre-approved with First Financial.* Learn more about our current auto loan offerings, or fill out a quick inquiry form online. We can help you compare the numbers and guide you to make the best financial decision for you!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

 **Mechanical Repair Coverage is provided and administered by Consumer Program Administrators, Inc. in all states except CA, where coverage is offered as insurance by Virginia Surety Company, Inc., in WA, where coverage is provided by National Product Care Company and administered by Consumer Program Administrators, Inc., in FL, LA and OK, where coverage is provided and administered by Automotive Warranty Services of Florida, Inc. (Florida License #60023 and Oklahoma License #44198051), all located at 175 West Jackson Blvd., Chicago Illinois 60604, 800.752.6265. This coverage is made available to you by CUNA Mutual Insurance Agency, Inc. In CA, where Mechanical Repair Coverage is offered as insurance (form MBIP 08/16), it is underwritten by Virginia Surety Company, Inc. Coverage varies by state. Be sure to read the Vehicle Service Contract or the Insurance Policy, which will explain the exact terms, conditions, and exclusions of this voluntary product. MRC-2341946.1-1218-0121 © CUNA Mutual Group

3 Important Car Buying Tips

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Are you looking to buy a new ride before the end of the year?  Here are three important factors to consider before you sign your name on the dotted line.

Needs vs. wants: What do you plan to use your new ride for – commuting, weekend trips? These are just a few questions you should consider.  A smart car might get incredible gas mileage during your long commute, but really lacks in terms of cargo space. You may be able to get a bag of groceries home, but what about that 6-foot ladder you need? Don’t forget about things like Bluetooth connectivity and heated seats also. Weigh all your options before getting too excited about what car looks the coolest.

Monthly payments vs. total price: You love the lower monthly payments, but are you really considering how much a new car is going to cost you by the time you’ve paid it off in six years? Maybe you’re a big fan of the total price you’re getting, but you know the monthly payments are going to take some sacrifice in your budget. Is that something you really want to endure? Have you also factored in other costs like insurance, gas, oil changes, tires, and preventative maintenance? Take your time and make a list so you get a better idea of the true cost of your new vehicle.

Know your car before you buy: Do some research and see how other owners are feeling about their purchase.  Always take a test drive, and try riding through parking lots. How does it ride? Is it only smooth on smooth roads? What’s it like going over a speed bump? When it comes time to buy, it shouldn’t be a mystery and you should feel comfortable with your decision – this is a big purchase you will be using daily over at least the next several years.

In the market for a vehicle? If you’re just starting to shop, get preapproved and if you’re ready to make the purchase – apply for an auto loan online 24/7. We have quick approval decisions and same day closings!

APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial auto loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

Article Source: John Pettit for CUInsight.com