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
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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?
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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
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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
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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!
Visit us online at www.comfedcu.org
Or on facebook at:
www.facebook.com/CommunicationFederalCreditUnion