Helpful Information for Automobile Buyers
Are you considering trading your vehicle or purchasing a new or used vehicle? If so, NMTW would like
to help you save time & money, and eliminate the stress, using our free Auto Advisor service. Our
Auto Advisor will be happy to give you a call to tell you more about the program and what you should
know BEFORE you go shopping.
What can you expect from NMTW’s Auto Advisor?
l
l
l
l
l
l
l
Save time and money
Eliminate the frustration
Shop with a personal advisor
The advisor represents you at the dealer
Substantial savings with credit union financing
Protects your financial interests & personal financial information
Finally! Make car buying a pleasant and hassle-free experience
Here are just a few tips that you’ll pick up when working with the Auto Advisor:
How those low-rate financing offers really stack up
Many car manufacturers are now offering 0% financing and while 0% financing may sound attractive, be
careful before choosing this option. Let's take a look at some facts.
1. 0% Financing is usually only for qualified buyers, with very high credit scores, and for a short
term, usually 36 months. What does this mean? If you do qualify, your payment for a $20,000
loan (normally around $400 per month) will be about $556 per month! If you do not qualify,
you will be offered a higher rate, maybe 4.9%, and by accepting this rate, you will be giving up
a substantial rebate!
2. In almost every instance that special financing is offered through a dealer, the buyer usually
has to choose between the low finance rate and a considerable rebate. When you choose the
rebate, that amount is immediately subtracted from your selling price. When you choose the
low finance rate, the amount of the rebate is used to "buy down" the interest rate. So if you do
not take your loan to term (make ALL of the payments), you have not taken full advantage of
the savings. The only exception would be if ALL of the following conditions apply to you: An
exceptional credit score, excess cash flow to make the higher monthly payment, and you must
keep this particular vehicle for the full loan term. If it is traded, stolen or totaled, you have
wasted the savings.
Phone: Toll-free (800) 942-9575 ext. 6640 Cell: (508) 561-6566
Email: [email protected] www.cuautoadvisor.com/nmtwcu
l
Example – Kathy Z., a credit union member, purchased a new VW Beetle in July. After her down
payment, Kathy had the option to finance $19,750 through VW Credit at 1.99% APR over 60 months,
or take a $2,000 VW rebate, thereby financing $17,750 at the credit union’s rate of 4.75% APR, also
over 60 months. Here’s how the options compared:
VW Credit low-rate financing
Credit Union financing
Finance amount $19,750
Finance amount $17,750
TTL payments = $20,765.40
TTL payments = $19,976.40
60 mos. @ 1.99% APR= $346.09 per mo. 60 mos.
@
4.75%APR= $332.94 per mo.
Kathy’s savings by taking the rebate
$789.00
**Note: Savings even greater if vehicle sold,
traded, or paid off before 60 months
Please remember Auto Advisor Rule Number One:
It is almost always better to take the CASH REBATE than to take the low interest rate offer. The full
savings are immediate; no risk - no wait!
For your security and peace of mind:
Financing through the credit union eliminates the need to share your personal financial information
with yet another organization (and their partners).
The Truth About Trade-ins and Used Car Book Values
_____________________________________________________________________
In order to place a value on your trade, dealers often refer to many sources, including Kelly Blue
Book (kbb.com), NADA (nada.com), wholesale and auction prices, and market knowledge.
While NADA and Kelly Blue Book can be a good guide, the only book that really matters is the
checkbook of the dealer who's buying the trade. Trade-in values are driven by the prices those vehicles bring at auction. Adesa and Mannheim are two of the primary auction networks in this market.
The dealer's goal is to pay as little as possible for the trade. That's why Auto Advisors tries to "shop"
the member's trade among various dealers in our network.
While dealers typically inflate the trade-in value using rebates or other discounts otherwise taken off
the price of the car you're purchasing, we help you determine the actual cash value (ACV). The ACV
could be described as the amount the dealer would be willing to pay for your car even if you were not
buying a car from them.
Phone: Toll-free (800) 942-9575 ext. 6640 Cell: (508) 561-6566
Email: [email protected] www.cuautoadvisor.com/nmtwcu
Auto Industry Advertising Disclaimers
Bewildered by an auto industry disclaimer? Need help deciphering the fine print?
Here’s help.
FINE PRINT
Taxes not included. 1.9% annual percentage
rate financing on select models to qualified
buyers. Cannot be combined with any other
rebate or lease specials. Photos for display
only. All rebates to dealer. Prices do not
include inland freight, tax, title or registration.
Sale ends (date).
If you drive any GM vehicle, you may qualify to
receive an additional $2000 rebate. Pricing
reflects $1500 bonus cash GMAC financing.
TRANSLATION
Advertised vehicles must be paid in full at time
of purchase. All discounts include military
appreciate r ebate & owner loyalty. All payments
reflect $2000 cash/trade equity. Subject to
credit approval. Payment term of 72 months
@4.99%/84 months @$2.9%. 0% financing in
lieu of all rebates. Expires (date).
Add $3,500 to every price, unless you're trading
in a GM car and you're prepared to finance with
GMAC.
WAC.
With approved credit. The dealership decides
whether or not you are approved for credit.
Price includes $1000 24hr. cash drive coupon.
You are given this coupon upon arrival at the
dealership and it is only valid for 24 hours,
leaving no time to comparison shop.
Dealer retains all rebates and incentives.
Published prices may reflect rebates for Active
Duty Military, College Graduates, Owner
Loyalty, or using their (non credit union)
financing. It is virtually impossible to qualify for
all rebates and therefore you'll probably need to
add up to $4,000 to the advertised prices. Also,
this means that the dealer can keep all rebates
and incentives, even if they don't pass them
along to you.
Pictures for illustration purposes only. See
dealer for details. Vehicle quantities are
approximated and may vary. All vehicles
subject to prior sale. Not responsible for
typographical and printing errors.
Whew! Pretty obvious.
Prices and payments reflect $6,000 cash or
trade equity.
If you don't have the cash or a trade that's
worth $6,000 (more than you owe, if financed),
you'll need to add $6,000 to the advertised
price. This enables the dealer to advertise a
$20,000 vehicle for $14,000, but don’t expect to
pay $14,000…
Phone: Toll-free (800) 942-9575 ext. 6640 Cell: (508) 561-6566
Email: [email protected] www.cuautoadvisor.com/nmtwcu
What's a Certified Used Car? Does it Mean Anything to Buy One?
The Certified used car concept was originally created by the manufacturers as a way to drive used
car customers to their dealerships, and possibly to justify higher prices. As a buyer, you need to
evaluate if the prices and coverage are worthwhile.
"Certified" used cars carry a manufacturer's warranty that takes effect upon purchase or once the
original warranty expires. They often work just like a new car warranty, covering a certain number of
years or miles, and certain components of the vehicle, but the coverage can vary greatly across
manufacturers, so you need to check. While some used cars offered with third-party warranties are
sometimes advertised as "certified," they technically are not because the vehicle's manufacturer is
not supporting the warranty in any way.
Many advertisements claim that certified vehicles go through a more rigorous inspection process
than non-certified vehicles. However, good dealers should always perform a complete inspection
and perform whatever service is necessary to ensure that vehicle will be safe and reliable. We
stress this among the dealers in the Auto Advisor network.
The attraction to certified used vehicles appears clear - new car warranty benefits at a used car
price. But the rules and dollar amounts vary across makes, so check with your Auto Advisor to learn
more about warranties and dealer service.
What is Auto Advisors? How can it help me?
Auto Advisors is a new hassle-free buying service available only through your credit union. Once
you work with an Auto Advisor, you’ll never shop for a car the same way again.
We eliminate the stress.
We do the leg-work for you, eliminating the visit to the showroom, the high pressure sales tactics,
the waiting around, and having to drive from lot to lot. And remember, when you go to a dealer
alone, you’re setting yourself up for an expensive trip to the finance office. One thing most car shoppers don’t realize is that a “good deal” involves much more than just the price.
Here's how we help.
First and foremost, we represent you. We educate you on the car buying process, and ensure that
you get the vehicle you want at a price you want to pay and full value for your trade. And that’s not
all!
Straight talk on cost, financing, rebates, incentives and trade-ins
Hassle-free shopping — no negotiating with car dealers
l Best purchase and lease options and extended warranties
l Consultation about the ENTIRE transaction.
l Competitive vehicle pricing including top dollar value for trade-in vehicles.
l Help with credit union paperwork and financing options.
l
l
So don’t delay. Make an appointment with the Auto Advisor BEFORE you go shopping and save
yourself time, money and hassle! Call 800-942-9575 x6640 or e-mail [email protected]
Phone: Toll-free (800) 942-9575 ext. 6640 Cell: (508) 561-6566
Email: [email protected] www.cuautoadvisor.com/nmtwcu