By Domi Garcia, Assistant Loan Officer Onarga Office
Buying a vehicle can drive you crazy – pardon the pun! But it doesn’t have to. There are things that you can do to make the process simpler, easier, and more likely to have a happy ending. Here are a few:
Be smart about your financing. It is a good idea to shop for a loan before you shop for a car. Doing so will help you to be better prepared before you buy, and you can enter the car buying negotiations with confidence. Taking care of your financing ahead of time lets you know how much you have to spend and prevents the dealer from using financing as a negotiating point in the price of the car. While we don’t claim to be experts in vehicles, Federated Bank can definitely help you with the financing process. Not only do we offer competitive auto loans with fair and flexible terms, we would be happy to evaluate the loan offers you have and help you find the best deal for you.
0% financing from the dealer is the best deal, right? Not always! In many cases, 0% or low dealer financing rates are a hook to bring potential car buyers into the dealership. When you agree to 0% financing on your car loan, you’re typically exchanging that interest rate for other favorable terms like manufacturer rebates and incentives. Many times, you could actually save more if you forgo the 0% auto loan from the dealer and finance at a community bank, like Federated Bank, enabling you to capitalize on those rebates. Ultimately though, the deciding factors will be the interest rate you get on your car loan and the size of the rebate available.
Know what you want and need. Now that you know what you can afford, the next step is to know what you need. There may be certain features that you know you want or need in your next vehicle. For example, you may need a vehicle that holds a minimum amount of people or that has 4-wheel drive. These needs will limit your search so it is good to have a list of those necessary features.
Research, research, research. Even before you start actively looking, there is a lot of information available. Find models that fit your needs and price range and start your search there. You can investigate things like safety, gas mileage, reliability, average lifespan, and price. Knowing general information about the vehicles you are interested in will make you a wiser negotiator and a happier consumer. Once you find a vehicle that meets your requirements, you should turn your search to the details of this particular vehicle. Conduct a thorough inspection of the car, look at the maintenance records, and take it for a test drive. It is also advisable to have it looked over by a mechanic and get an independent history of the vehicle through trusted database services like the Department of Justice’s National Motor Vehicle Title Information System (NMVTIS) or the National Insurance Crime Bureau (NICB).
So before you head to the car lot or the dealership, stop by your local Federated Bank branch and let us steer you in the right direction – pardon the pun!