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A. Your
past and current credit history can have a bearing on your ability
to purchase a vehicle. That does not mean that you will not
be able to purchase but could increase the rate of interest
for your loan. Your credit union loan officer will discuss
this with you in detail. Many lenders base your ability
to buy on a credit rating or what is referred to as a FICO
score. Actually, you can have as many as three FICO
scores, one for each major credit bureau. These three are Experian,
TransUnion and Equifax. (1)
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| A.
Yes, you can contact any or all of the agencies for a copy
of your report. (2)
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| A.
We strongly recommend that you visit your credit union prior
to selecting a vehicle. You can have your loan pre-approved
and will know what price range you should be shopping for.
(3)
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| A.
No, speak with your credit union loan officer.
(4)
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A. In
the marketplace today we see the majority of manufacturers offering
rebates and special financing. Your credit union loan officer
will gladly review these options with you. This will enable
you to make the decision that is best suited and, of course,
provides the greater savings for you. (5)
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| A. There
are several steps to be taken when purchasing a used vehicle
and reputable dealers will encourage you to take your time and
make the right selection. Start with a test drive. Don’t
just drive around the block but drive for several miles at different
speeds and under stop and go conditions. The car should “feel
good” from a handling standpoint. You should test all
the options such as door locks, air-conditioning, power windows,
stereo and any other accessories. The
dealer should provide you with a vehicle condition or history
report. These reports will search the condition of the vehicle
for major items such as flood damage, not actual mileage,
major collision damage, rebuilt salvage title and additional
areas of concern. Please review and utilize AutoCheck
on this web site.
Take the
car to a mechanic of your choice and have it thoroughly checked.
Certified repair shops will have a check list of items to
inspect. This can cost you a few dollars now but you will
never make a more sound decision.
(6)
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| A. Any
vehicle purchased from a dealer should pass your state Department
of Motor Vehicle (DMV) inspection (where applicable.) This means
that tires, brakes, mechanical (engine, transmission) and lamps
including headlights, brake lights, turning signals and back-up
lights must meet state standards. All promises should be given
to you in writing.
Extended
service contracts are available to purchase from most dealers
if the vehicle meets the year and/or mileage requirements.
However, check with your credit union before purchasing. We
recommend that you purchase your extended service contract
from your credit union when available.
Do not
confuse a warranty with an extended service contract. The
warranty is provided from the manufacturer of an automobile
and is included in the purchase price. An extended service
contract is purchased as an addition item at your discretion.
It is not mandatory that you purchase a service contract.
(7)
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| A. This
is perhaps the most frequently asked question in the auto industry
and, not surprisingly, there is not a simple one line answer.
We all understand that a vehicle is like any product in that
there is a wholesale and a retail price.
There
are many factors involved with a trade-in. A dealer must consider
the year, make, model, mileage and condition when doing their
appraisal. Please keep in mind that a dealer must adjust for
any cosmetic reconditioning, tires, mechanical and electrical
problems or even frame damage when inspecting your automobile.
If the
dealer accepts your trade-in there are other expenses associated
with the resale that must be considered. These expenses may
include advertising, sale commission, and, in some instances,
a guarantee to the new purchaser. This information to some
degree should explain why the trade-in price offered by the
dealer is sometimes less than what you expected.
You may
decide to sell your vehicle on your own. The dealer appraisal
amount will give you a basis to determine your asking, or
selling, price. AutoCheck
will allow you to do a vehicle history report for prospective
buyers. Remember, there can be problems associated with selling
a vehicle on your own and the risk sometimes just isn’t
worth the reward.
(8)
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A. Absolutely
not! You decide what, if any, add-ons you need and you make
the decision. If the dealer has already installed any, have
them locate or order you a vehicle without these add-ons. If
the dealer isn’t agreeable to that we suggest you shop
elsewhere. (9)
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| A. Automobile
manufacturers offer rebates or special financing periodically
on selected models. A rebate is offered to the consumer when
purchasing certain models. This rebate can be used to lower
the purchase price by you assigning it to the dealer, or it
can be forwarded directly to you from the manufacturer.
In lieu
of a cash rebate, some manufacturers will offer financing
at a seemingly low rate. Often the low rates will be for 24,
36 or 48 month financing and payments will be difficult to
meet. In most all instances, you also forfeit the rebate which
could be invested and earning interest during the same period.
If you
haven’t already considered what an affordable monthly
payment is, speak with your credit union. They will assist
you by looking at what your monthly income is versus your
monthly expenditures. You can determine from this what a reasonable
and comfortable payment is. This is a major decision that
requires some thought.
Manufacturers
can offer incentives to dealers on some or all of the models
of a particular make. The dealer can retain all of the incentive
or, in some
instances, further lower pricing and “share” their
incentive with consumers.
(10)
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