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Car Buying HelpDo a little research, go shopping with SLFCU's help and take control of the deal.
Get more in a new car and pay less.
Gather as much information as possible. Consider interest rates, trade-in value, the price of the new car itself and options packages. Walk into the dealer with your facts and SLFCU financing completed. That way, you'll be able to take advantage of factory rebates and you won't be distracted by negotiating loan terms at the same time you are trying to get the best price. Dealer financing rates that sound unbelievably low generally come with a substantially higher vehicle purchase price.
The Trade-In
If you must trade in, always negotiate a trade-in value before negotiating the new car price. Dealers prefer to price your trade last, because once you've committed to the new car, you're mentally ready to walk away from your old one. Remember, the dealer will most likely sell your trade-in at NADA retail or more so aim to get at least NADA wholesale for your old car.
New Car Price
Get a good fix on the base price and the prices of all the options available. Use NADA guides, SLFCU's lobby computers, or buy a Consumer Reports' price report on the car you're after. Industry publications like Automotive News are great sources. If these sources report your target car has seen slow sales lately, you've got extra leverage.
A dealer markup of 2% to 5% above wholesale is sometimes called a "fair" dealer profit, but in reality there's no way to know what "fair" means. The cars on the lot don't even belong to the dealer. They are there as part of a monthly "floor plan" rented from the manufacturer. Since you can't ever really know the dealer's bottom line, go for the best price you can get, and negotiate from a base of knowledge.
Options
The dealer knows the option prices cold, and so should you. Options give sales people a bewildering number of combinations to impact price. Take your own research along, but don't share it with the dealer. Take time out during negotiations to check the dealer's numbers against your own. Take a notepad, pen, and a calculator for this task.
Financing
If you're not paying cash, have your loan ready, or call us from the showroom at 293-0500 or 1-800-947-5328, day or night. With a Fixed Rate Auto Loan from SLFCU you can get a fast answer on your application and a payment that's easy on your budget, with terms up to 84 months for new cars and 72 months for used. And if you don't have a down payment, we can finance 100% of your purchase price, including tax, title, license and extended warranty.
And remember, there's never a pre-payment penalty for any SLFCU loan. The sooner you pay off your loan, the more you save on the total price of the car.
Timing
- The dealer has to wait for you to come in, so use that advantage.
- Shop when you're rested, not rushed, and try not to wait until you're desperate for transportation.
- Shop toward the end of the month, when sales people are anxious to fill their quotas.
- Shop when the weather's bad, keeping other shoppers away.
- Arrive an hour or so before closing when sales people are thinking about going home and may be more likely to deal.
- Take your time.
Get all your questions answered
- Show that you're a serious buyer and that you want to be sure this big investment is the right one. The more time they invest in you, the more they count on the sale.
- Don't be rushed by the classic line "If you buy today I can give you a special price."
Look and Act the Part
- Dress comfortably, but well. Look the part of a financially solvent buyer.
- Exchange business cards with the dealer.
- Act reserved, not chummy. These people are well trained to take your money. Your friendship is not what they're after.
- Volunteer as little as possible. The salesman should be answering your questions, not you his.
- Frankly tell the dealer you're seriously shopping for a new car and will shop the competition, too.
Have your financing pre-approved at SLFCU. Ask the salesperson to focus on price and not to worry about how you'll pay for the car, since that's all set.
Walk Out
You are the customer. The dealer needs you and owes you respect. If the discussion is not going to your liking, simply say "I'm not happy with our progress." Once you've had a test drive — after a salesperson has spent time with you — even after a second or third visit — your position is actually stronger because of the time invested by the dealer. It's your prerogative to break off negotiations at any time, and to resume when you wish.
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