Used Car Buying 85x14 - Baton Rouge Telco Federal Credit Union

Step 6: Test-driving a used car
Test driving a used car helps you decide whether it is the right one for
you, and also helps you determine its condition. When you get behind
the wheel, ask yourself if it is a good fit. Is it comfortable? Are the
controls positioned in a way that feels natural, or will you always be
hunting to turn down the radio?
Try to arrange the test-drive when the car’s engine is completely cold.
Some cars are harder to start when they are cold, so testing this can
reveal chronic problems. Turn off the radio before driving, and concentrate on the engine and the driving experience. You can test the radio
when you return to the lot.
On the test-drive, evaluate the car on these points:
Acceleration from a stop; visibility (check for blind spots); engine noise;
passing acceleration; braking; cornering; suspension (how does it ride?);
rattles and squeaks; cargo space
Take your time and be sure to simulate the conditions and manner in
which you drive on a regular basis. If you do mostly highway driving, get
the car on a highway to make sure it rides and performs as needed. After
the test drive, ask the owner to see the service records. Make sure any
scheduled maintenance was completed on time, and avoid vehicles that
have been in a serious accident or have had major repairs done. If you
like the way the car drives, it is still recommended that you take it to a
mechanic for a more thorough inspection. A private seller with nothing
to hide will generally allow this without much resistance. A dealership
may be more difficult, but with a Certified Pre-Owned vehicle, there is
less need for the inspection.
Step 7: Negotiating for a used car
Successful negotiations can only come from having solid information.
This holds particularly true when buying a car. Unlike most private party
sellers, dealers have expertise in negotiating, often making the experience intimidating unless you have your ducks in a row.
Some good guidelines to follow when negotiating are:
- Only negotiate with a salesperson with whom you feel comfortable.
- Make an opening offer that is low, but in the ballpark.
- Decide ahead of time how high you will go, and leave when your
limit is reached.
- Walk out. This is your strongest negotating tool.
- Be patient. Plan to spend an hour negotiating in a dealership.
- Don’t get talked into related items such as extended warranties or
anti-theft devices unless you truly want them for peace of mind.
- A “closer” (high-pressure salesman) may try to improve the deal
before you reach a final price.
- Once you have a deal, make sure the transaction is completed as
discussed and agreed upon. See next step for details.
Used Car
Buying Tips
Steps to a Better, Smarter Buying Experience
Step 8: Closing the deal
If you are at a dealership, the last step is the finance and insurance (F&I)
process. If you are buying from a private party, you just have to make
sure that payment is final, and that the seller properly transfers title and
registration to you. Telco offers notary services for any documents which
might require it.
In both cases, you will need to make sure you have insurance coverage
for the car you are buying. Keep in mind the F&I person at a dealer will
likely try to sell additional coverages and services such as an extended
warranty, prepaid service plans, wheel & tire insurance, and more. You
may add any of these for peace of mind. However, be firm and only
purchase a product if you truly want it.
When the contract is ready, review it thoroughly. Make sure you understand the charges and question the appearance of any large, sudden
additions to the contract.
If you buy from a private party, you will likely be asked to pay with a
cashier’s check or in cash. Before the money changes hands, request the
title and have the seller sign it over to you. Rules governing vehicle registration and licensing vary by state, so check the registry’s website for
your state.
Finally -- once all of the paperwork is complete, it is time to relax and
begin to enjoy your new purchase: a good used car.
Reference: www.edmunds.com
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Getting started: Why buy used?
Good reasons to buy used cars include:
Saving money on car insurance; bigger bargains possible for the smart
used-car shopper; Telco offers the same low rates on new and used
vehicles; used cars are more reliable than ever before; some cars are still
covered by the factory warranty; most new carmakers now sell certified
used cars which include warranties; Telco offers affordable warranties
on used cars; the history of a used car can be easily traced with its
vehicle identification number (VIN) and a vehicle history report.
Step 3: How much can you afford?
Smart shoppers will consider how to finance the car at the beginning of the
shopping process. Doing this avoids unpleasant surprises later on, and helps
you make informed decisions while staying within your budget. Telco has a
Loan Calculator (www.brtelco.org/home/accounts/calculators) to help
guide you as you go shopping. Two key questions to answer before shopping
are:
Monthly Payment: If you are taking out a loan, how much can you afford
to pay each month?
Down Payment: How much cash can you put down to reduce your
monthly payments?
Answering these two questions will help you determine a realistic price
range for the purchase price of your used car. Print out each of these
figures and take them with you when negotiating for any cars you are
interested in -- it may help bring you back to earth on cars that are not a
good fit for your budget. You do not want to make rush decisions that
leave you strapped for money later.
Step 4: Set up financing for your used car
There are three ways to pay for your new purchase:
Cash: The easiest buying method, but not an option for most consumers.
Step 2: Research your prospective used car
You can find all the information you need to make an educated car buying
decision at websites like Edmunds.com or ConsumerReports.org.
Access information such as prices, standard features, safety & reliability,
fuel economy, photos & video, resale values and local listings.
Another vital step in getting a great used car deal is to run a vehicle
history report on any used car you are considering buying. Carfax and
AutoCheck are generally the most comprehensive reports, and are based
on the VIN of the specific car you are considering for your purchase.
Baton Rouge Telco Federal Credit Union
Financing through Baton Rouge Telco: This method is recommended
because it will generally save you money, and gives you the most control over
the buying process. Getting PRE-APPROVED prior to shopping for an auto
is always best and simplifies the transaction, and helps keep your payments
where they need to be.
Financing through the dealer: This approach can work for some buyers
depending on their credit scores. Whether the dealer is one of our preferred
dealerships, a franchise dealership or independent dealership, interest rates
based on year/make/model/mileage and financing sources will fluctuate.
Financing through an independent source like Telco offers several
advantages. It keeps negotiations simple in the dealership, allows you to
(225) 924-8900
(800) 634-3044
shop for competitive rates ahead of time, removes
dependency on dealership financing, and helps you stick
to your budgeted amount.
Scan the QR code with your smartphone to get rates and information from Telco.
Step 5: Where to shop for your used car?
The most common places to buy a used car are:
- Private Parties
- Used-Car Section of New-Car Dealerships
- Preferred Dealer Network
- Enterprise Car Sales
- Independent Used Car Lots
Of these sources, private parties generally have the most reasonable
prices on vehicles. It can also be a more relaxed buying experience than
facing a salesman at a dealership. Still, there are advantages to buying a
used car at a new-car dealership. Dealerships generally get trade-ins
from consumers at rock-bottom prices. By making a low offer that still
allows them to make some profit, you may be able to get a good deal.
Additionally, many dealerships offer Certified Pre-Owned vehicles that
have been thoroughly inspected and are backed by protective warranties.
Using the Preferred Dealer Network (www.cumemberautocenter.com)
is another great way to find a used car. Telco also partners with Enterprise
Car Sales (www.enterprisecarsales.com/brtelco) to offer excellent
financing options on thousands of quality used cars, backed with the peace
of mind of an Enterprise warranty.
Outside of searching dealerships, one of the easiest ways to search for
your next car is to use online classifieds through sites such as
Edmunds.com, AutoTrader.com, and Cars.com. Find cars that fit your
needs and your budget, then call the sellers on any prospective cars to get
more information about mileage, condition, and any problems the vehicle
may have. Set up an appointment to test-drive the cars of most interest;
try to schedule a daytime appointment to better review the vehicle’s
condition in person. If a vehicle doesn’t come with its own warranty, Telco
offers comprehensive warranty options through the credit union. Ask a
representative (225-924-8900) for more information.
loans@brtelco.org
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