5 Ways to Get a New Car for Less

Premium styling. Flawless paint. Glistening tires. That unmistakable new car smell. Everything about a new vehicle practically begs you to buy it. When you close your eyes and think about driving your brand new set of wheels off the lot, it quickens your pulse a little, doesn’t it? Shopping for your next vehicle is a uniquely exciting experience. Usually until you look at the price tag, that is.

If you haven’t priced cars recently, you may be surprised by the figures you find. According to a recent report by Edmunds, the average loan amount for a new car jumped to more than $32,000, and the average monthly payment rose to $558. Sure, the latest models may be nice, but facts are facts—that’s a lot of money to pay for a car.

Now, before we go any further, if you’ve been saving up for your dream car and figured out how to buy it without demolishing your budget, then by all means – go for it! But if you find yourself in the market for a new vehicle and you want to avoid overspending, we’ve got five tips to help you hang onto more of your hard earned money.

5 Ways to Save Money When Buying a Car

Do your research.

The last thing you want to do is show up to a car lot with no idea what you’re looking for. Lack of preparation puts you at the mercy of the salesperson. And while they may be genuinely nice people, sales professionals make their living by getting you to buy a product at the highest price possible. So, before you head to a dealership, narrow down your choices by doing your research. Thanks to the Internet, companies like NADA, Car and Driver, and CarsDirect can help you sort thousands of options by everything from location to price to trim packages.

Get preapproved. ​​

Once you’ve determined which vehicle fits your preferences and meets your needs, it’s smart to get preapproved for financing. There’s a good chance you’ll find better financing rates through your local credit union than through another lender. Once you’re preapproved, you’ll know how much you can afford, what interest rate you’ll pay, and what your monthly payments will be. This information gives you the upper hand in price negotiations and keeps you from getting distracted by dealer tactics that focus strictly on monthly payments. Preapproval lets you negotiate based on the most important aspect—price.

Shop for incentives.

When sales are lower than expected, automakers will often extend money saving incentives to encourage buyers to purchase their vehicles. This is an instance where the manufacturer’s loss can be your gain. If you’re not already loyal to a particular make or model, you may be able to take advantage of dealer incentives such as discounts, rebates, and lower APR on financing. If you are loyal to a specific type of car, that can work in your favor as well, as some car companies will offer customer loyalty incentives to encourage you to keep driving their cars.

Ask for a lower rate. 

There are plenty of books, websites, and podcasts that offer tips and tricks on negotiating more effectively. While most of their ideas have merit, there’s one suggestion that may seem a little too simple and straightforward—ask for a better deal. In most cases, a dealer or salesperson will start negotiations with an offer that benefits them the most. Asking them to do better is part of the game. To give yourself the best chance of success, be polite and be prepared to walk away. Some dealers will play hardball, but when they have an interested buyer (especially one with preapproved financing), most would rather sell a car for a little less than let it sit on the lot and hope another buyer comes along.

Choose a used car instead.

Maybe this tip isn’t exactly a way to “get a new car for less,” but it is an excellent way to save money on your next vehicle purchase. Since most new cars depreciate an average of 20% in the first year and nearly 50% after five years, buying a preowned vehicle is a smart way to steer clear of that depreciation. It’s also worth mentioning that in addition to their lower upfront prices, used cars usually cost less to insure. Save now. Save later. That’s a pretty convincing sales pitch, isn’t it?

When you’re ready to start shopping for your next car, we’re confident that you can handle the research portion. But when it comes to the financing and preapproval, do yourself a favor and contact us here at First Financial. We may be able to offer you a lower rate and more flexible terms than a traditional bank or lender.* Give us a call today. You’ve got nothing to lose — except months of unnecessary interest payments!

*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. 

 

How to Choose the Right Preowned Vehicle for You

Shopping for any vehicle can be intimidating. And making a big purchase that has about 30,000 parts which need to be in safe working order is not a small feat, but here are a few important pointers on how to pick the right new-to-you vehicle.

First, before you hit the lot – understand your needs. To do this, think about your current car and why you are looking to give it up. What bothers you about it – is it too small, would you prefer a smoother ride? It’s also helpful to think about the next few years in the vehicle you are about to purchase. Are you going to be starting a family in the near future, do you have pets you transport to the dog park? Do you have a long commute? You want to make sure you will be buying a reliable vehicle that meets your personal needs. It might be a good idea to shop online prior to visiting the dealership. Be sure you are getting exactly what you want – this is a big purchase that you will need to live with for a number of years to come.

Get a friend. Or a family member who knows cars. Or does a coworker currently drive a car you like? If so, talk to them about their vehicle. Find out what they love (or don’t). See if they’ll let you test drive their vehicle. This is a big help when trying to find the right car for you.

Find a car that looks good. It’s hard to tell if an engine is in top condition, but a decent way to tell is by looking at the rest of the car. How has it been treated? If the previous owner cared for the paint, they probably cared for the bigger things as well. A used car should be as close to showroom condition as possible. A car never has to be damaged – regardless of its age. If it is, make an offer accordingly.

Fewer miles doesn’t necessarily mean fewer problems. Fewer miles is generally a good thing. Although city miles are much harder on a car than highway miles. This means a car with 10,000 miles that has lived its life in a big city may be in worse shape than a 20,000 mile car whose owner had a long highway commute each day. Miles are a good indicator of how many years are left in the car – but it’s also important to note how they may have been tallied, if possible.

Should you get an inspection? An inspection is always best if you’re serious about buying the car. It can save you thousands and give you great peace of mind. If you’re considering a used vehicle from a dealership, check out the Carfax report on the vehicle before you buy.

Always be ready to walk away. Do not fall in love with the car before you get to see it, because you may talk it up in your mind, instead of seeing the vehicle for what it truly is. Walk away if the car isn’t great. If it’s good but not as you expected, make a lower offer than what you were prepared to give. Price is always negotiable.

Price. Do you research beforehand, and make sure the dealership or private seller is in the ballpark. Most sellers are going to try to price the car higher and expect you to negotiate. Kelley Blue Book is a great resource for comparison.

Don’t be persuaded. Don’t let a pushy salesperson change your mind. Be sure you end up with the vehicle you want and are comfortable with. In the end, you’ll be the one who will be driving this car on a daily basis – so be sure you are 100% secure in your decision to purchase.

Some final pointers to consider:

  • Not all cosmetics matter. Minor dents/scratches on the exterior, a missing hub cap, a small upholstery stain – these can be easy negotiating points to lower the sticker price and simple (and inexpensive) enough for you to have fixed on your own later on.
  • Don’t get too caught up on mileage. A well maintained car can easily log 200,000 miles (maybe even more if it was a great, reliable car to begin with). Engines run for a very long time if they were properly maintained. You’ll need to do your research on the history of the used vehicle and weigh the following – is it better to buy a car that has been well taken care of with 150,000 miles or one that has only 75,000 miles but was poorly maintained?
  • Tires – another negotiation tool. It’s important to note how the tires are worn. If they are evenly worn, that’s a better sign. But if the treads are irregular, this could mean neglect or a mechanical issue. If the vehicle you are looking at needs new tires, this is another point you could try to negotiate off the sticker price.
  • Properly repaired accident damage isn’t always a deal breaker. This goes along with researching the vehicle’s history. Maybe the vehicle was in a small fender bender years ago and there’s a little dent in the body that doesn’t affect the safety or use of the car in any way. Or maybe the car had some body repairs made from a previous accident and it’s as good as new now. Just because the vehicle was in an accident, doesn’t always mean it’s damaged goods. Again, do your research and have the vehicle inspected by a trusted mechanic if it will make you feel better.

In the market for a preowned vehicle? First Financial’s auto loan rates are the same whether you buy new or used! 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: Will Lipovsky for Moneyning.com

6 Things to Do Before You Buy Your Next Car

1. Figure Out What You Need

It’s not always about what you want, but what you need. If it’s your first car, you may only need something that will get you from point A to point B and around town – and won’t need to spend a huge chunk of change.

2. Acknowledge What’s Practical

This is about tempering expectations. Before you buy, be realistic about your situation. Is your family growing? You may want to think about a larger vehicle like an SUV or mini van.

3. Check Into Your Credit

Do you know where you stand with your financial reputation? You’ll get better loan terms and be in a better position to negotiate if you have good credit. Look at your credit report to see if there are errors that could drag you down. Also, have a look at your consumer credit scores from free sites like Credit Karma and Credit Sesame. While they aren’t “official,” they can give you a good idea of where you stand.

4. Know Your Budget

You can use car loan calculators to figure out monthly payments versus total loan amounts ahead of time. Know your budget, and be prepared to stand firm. Once you get to the dealer, there’s a good chance they will try to nudge you a bit by focusing on a monthly payment and convincing you to get a 60-month or 72-month loan. Figure out a total price you want to pay for the car, and stick to that.

5. Research the Options

Do your homework.  Look into cost and vehicle reliability. Figure out what works best for you in terms of safety, fuel economy, and so on. Consider Certified Pre-Owned or a lease return if you’d like a newer “used” car. These are lower cost, but still come with warranties and other perks.

6. Look for Incentives and Sales

Look for deals like year-end clearance events and manufacturer incentives. Check to see what’s available before you get out there, then use that information to negotiate the best terms.

For more advice on buying a car – check out our guidebook: Buying a car in 5 easy steps and video. If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in New Jersey – we can help you finance your next vehicle.* Learn more and 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. Federally insured by NCUA.

Article Source: Miranda Marquit for Moneyning.com 

How to Decide When It’s Time to Buy Another Car

At a national average of $479 a month, car payments can take a big chunk out of the monthly budget. Even if you avoid car loans, the high cost of a vehicle can delay other savings goals. Either way, it’s rewarding when a vehicle costs nothing more than fuel and routine maintenance. In fact, it’s such a rewarding feeling that you might miss important signs it’s time to start car shopping again.

Being frugal is a great quality when it comes to vehicle purchases – while the average consumer purchases a new one every 3 to 5 years, today’s vehicles are designed to last 10 or more. Still, it’s possible to be too frugal and end up costing yourself more money in the long run. If you have any doubts about whether it’s time to buy a newer vehicle, consider these four signs.

1. Your Vehicle’s Safety is Questionable

Aesthetic qualities and luxury features are one thing, but safety is quite another. If there’s any question whether your vehicle can get you safely from Point A to Point B, it’s time to consider an upgrade. Here are a few examples of what might constitute a safety concern:

  • Your vehicle sometimes has mobility problems. If this happens on the road, it could cause an accident.
  • Your vehicle lacks important safety features. Newer vehicles are equipped with advanced safety features, but we’re talking about the basics — seatbelts, curtain air bags, traction control, etc.
  • Your vehicle has been in an accident or has extensive rust that could compromise its structural integrity. The appearance of rust might not bother you, but the damage it does to internal parts could.

If you have an older vehicle and you aren’t sure if it’s safe, check with a trusted mechanic or vehicle safety inspector.

2. Your Vehicle Needed a Major Repair in the Last Year

Ditto for cars that frequent the auto repair shop. Occasional out-of-pocket repairs are less costly than a car payment, but if repairs exceed that $479-per-month average car payment, you might want to consider a newer vehicle. It’s easy to lose track of expenses that spread out over time, so get out the receipts and do the math.

3. Your Vehicle is Costing You in Other Ways

Maybe you work further away from home now and that gas-guzzler is jacking up your fuel budget and eating into other categories. If your car frequently fails to start in the morning, it might be costing lost hours of work or putting your job in danger. Be sure to consider these and other hidden ways your vehicle is costing you that might be grounds for trading it in.

4. Your Vehicle No Longer Fits Your Lifestyle

We tend to choose the size and style of vehicle that best fits our lifestyle, but preferences and lifestyles can change. Maybe you’ve become a new parent, sent your last child to college, or spend more time in your vehicle than in the past. All these changes can affect which vehicle is best for your needs. Just because you haven’t run your vehicle into the ground, doesn’t mean it’s wrong to trade the car in for something else that’s a better fit for you and your family.

Figuring out when to change vehicles is tricky. Use these four tips, and make the decision that’s ultimately best for you. If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in NJ – First Financial has some of the best auto loan rates and incentives in town!* Let us help you buy your new ride.

*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. Federally insured by NCUA.

Article Source: Jessica Sommerfield for moneyning.com

The 4 Best Months to Buy a Car

From Mondays when business is slow to right before closing when salespeople are in a hurry, there’s no shortage of theories about the best time to negotiate the best price on a new car. But what if you’re not a Monday person or you work the swing shift? Here are the four best months to negotiate a new car deal.

May

Memorial Day weekend kicks off the “big sales event” season for car dealers from coast to coast. And of course, the typical Memorial Day sale runs longer than just those three days. If you want to head into summer in a new ride, this is the time to do it.

Also, according to data compiled by TrueCar, Memorial Day weekend is an especially good time to shop for a mid-size SUV.

October, November, and December

Yes, all three of these are good months to go car shopping, but each month for a different reason – and a different type of car.

October is the first month that dealers really become aggressive about clearing out the previous model year. According to TrueCar’s data, buyers in October average nearly 8% savings off MSRP.

October is also a slow month for full-size pickups. With supply high and demand low, it’s an especially good time to deal on that F-150 or Ram 1500. Most pickups don’t change much from year to year, so if you’re willing to accept a truck from the previous model year, you may find yourself with a screaming deal.

Black Friday is supposed to be all about retail. However, in recent years, car dealers have jumped on the Black Friday bandwagon, too. TrueCar data suggests that November is an especially good month to buy midsize and compact cars. However, you’re well-advised to avoid SUVs and crossovers in November. Sure, supply is ample, but so is demand. Dealers are less likely to deal on whatever’s hot at the moment.

By the time December rolls around, car dealers aren’t thinking only about clearing out the previous year’s models; they’re thinking about hitting their annual sales goals, too. The big push is on to close deals. If you’re in the market for an SUV, TrueCar’s data indicates that waiting until December will pay off. Regardless of what vehicle you’re looking for, keep this in mind: While you may get a great deal on the previous model year, by December your choices will likely be very limited.

Bonus: New Year’s Day

Why would you go car shopping after the end of the year? Isn’t it already too late? Haven’t the dealers already reset for the start of the new year? It may surprise you to learn that the car dealer year actually ends on January 2. This gives dealers one final holiday to clear out inventory and make sales quotas. It’s literally their last chance to sell you a vehicle during the current year, so you’re really in the driver’s seat, so to speak.

Limit your car shopping to the months (and holiday) described here, and you’re sure to save some serious dollars!

If you need help financing, First Financial has you covered with low rates, personalized service, same-day approval decisions and electronic closings! Learn more here, and apply online 24/7.*

Article Source: CUInsight.com

*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. Federally insured by NCUA.

 

Buying New Stuff and When to Spend

Sometimes, it’s just nice to buy new stuff. But when will we get the best deals? Here’s a look at some common purchases and the best times to buy them.

TVs: It seems like a new TV is on the wish list every couple of years, and there’s no time better to make that purchase than the holiday shopping season. Your best chance would be a Black Friday sale, but decent deals usually run throughout November.

Furniture: New furniture is typically debuted in February and August, which makes January and July the best times to get a deal. Stores need room on the showroom floors, and you can take advantage of this need by helping them make some room.

Appliances: As the holidays approach, stores are eager to get old models out of the way to clear space for new arrivals. Take advantage of these savings and you get yourself some new appliances in September and October, just in time for Thanksgiving and the holidays.

Carpet: If you’re looking to outfit your home a with a new dance floor, the best time to do that is after the holiday season, usually mid-December until the end of January. Just make sure you don’t wait too late. Once the middle of February rolls around, tax returns start arriving and the sales cease.

Mattresses: As spring rolls around, the mattress industry uses Memorial Day weekend as their big push to clear out merchandise. Most holiday weekends will provide a deal, but Memorial Day weekend is the usually the best for your wallet.

A new car: So you’re tired of that old ride, huh? Sometimes you need a new car, sometimes you just want one. It’s fine to start looking – but you may want to wait until late summer to pull your wallet out. As dealerships start rolling out new models, it’s a great time to buy something from the previous year’s release. It also doesn’t hurt to shop on a less busy weekday near the end of the month to help salesmen pad their quotas.

A new home: If you’re buying a new home, you’ll want to look in the fall and winter. This is when you’ll find your best deals, especially in October, before the end of the year. Nothing would make a seller happier than unloading that property in time for the holidays.

Article Source: John Pettit for CUInsight.com