Car Buying & Financing Confidence

“Education that will save you time & money”Brought to you by:Georgia United Credit Union

Who is Georgia United Credit Union?

• 100% member-owned and not-for-profit• Founded by State Employees & Georgia

Educators• One of the largest & strongest credit union’s in

Georgia– 120,000+ members across Georgia– Together, we are $940+ million in assets– Deposits are insured by the NCUA up to $250,000

per account.

Today’s Speaker: Tywone Thomas

We will cover:

• Financing – The Importance of Pre-approval• Know market pricing• Trading-in a vehicle • Things to consider before you sign • Car buying service• Tips

Where do you start buying a car?

Financing

• Get pre-approved & know your budget before shopping.

• Don’t leave yourself at the mercy of dealer financing.

Financing- Benefits of Pre-Approval

• You are prepared with a budget• Won’t have to worry about financing on-the-

spot • Quick approval online or in-person• Pre-approval quote good for 60 days (from date is

credit is run)

Financing – Dealer financing or rebate?

Price Rebate Amt. Financed

Interest rate

term Monthly payment

NO rebate and 0% Dealer Financing*

$20,000 $0 $20,000 0.00% 60 months

$333

Dealer rebate and financing through Credit Union*

$20,000 $3,000 $17,000 1.99% 60 months

$298

Dealer Financing Vs. Rebate offer? EXAMPLE*: The dealer offers a $3,000 rebate off the purchase price or 0% financing with approved credit.

*Example only. Actual terms , rates & conditions vary.

Know Market Pricing

John Smith visited Toyota of Lawrenceville. He spotted a 2010 Honda Accord that was advertised for $15,995. He told the salesman that he would like to pay only $10,000 for the car and the salesman looked puzzled? He asked the customer where did he get that number from and the customer could not give an answer.

Where did Mr. Smith go wrong?

Know Market Prices

Check Values:• www.NADA.com• www.KBB.com

Know Market Pricing

Whitney received a call from her mechanic stating that it was going to cost more money to fix her 2001 Ford Focus than what the car is worth.

She decided to start shopping for another used car. She went straight to the dealer and saw a beautiful 2011 Chevy Cruze that had a special advertised price of $14,995. Whitney immediately agreed to buy the car at the special sales price.

What HUGE mistake did Whitney make?

Don’t shop alone

The Love Cloud

Your Trade

Advantages to Selling Advantages to a Dealer Trade

• Likely make more money $ • Tax advantages on your new purchase

• Example: New vehicle $25,000 and trade-in worth $10,000, your new taxable amount is $15,000*

*Taxable amount based on the State of Georgia’s value of the car not the sales price. You can view all taxable values on the GA Dept.

of Revenue website.

Your Trade

• Arm yourself with a CarMax trade-in quote• Get more than one appraisal • What if you owe more than your trade-in is

worth? – Consider selling on your own– “Dealer Payoff” – beware, negative equity will be

rolled into your new loan.

Before You Sign - Consider Fees

Sample: Bill of Sale

Before You Sign- Understand add-ons

• GAP Insurance – Pays you the difference between payoff from

insurance incase of a total loss– Good if you’re not putting much money down on

the car• Extended warranty

– Good if you don’t have money in the bank saved to fix problems

Before You Sign – Mistakes to Avoid

Jennifer found the deal of the century on a 2010 Mazda CX9. She purchased the vehicle for $2,000 less than the trade-in value. Two days went by and she noticed that her tire gauge light came on, so she decided to take it to a nearby tire shop to get it checked out. The mechanic looked at her and informed her that her tires were dry rotted on the inside and there was rust all underneath the vehicle.

What are two mistakes that Jennifer made?

Before You Sign - Mistakes

1. She should have asked for an Autocheck or Carfax report.

2. She should have taken the vehicle to a mechanic before committing to buy the vehicle.

Before You Sign – Consider Variable Cost

Such as Gasoline and Insurance

Before You Sign – be cautious of Scams

OFAC-Office of Foreign Assets Control

• Some dealers use OFAC as a way to get your social security number and pull your credit.

• If you are financing your vehicle with your credit union or paying cash, you do not have to fill out a credit application.

• Never give your social security number to a dealer unless you are financing with the dealer.

Before You Sign- Upgrades/Extras

• Does this car come with an ___________?

• Negotiate this before commitment. If you wait after the sale, you may be ignored.

Car Buying Service

• Credit union car buying service: Auto Assistance of Georgia

• Works with members to locate a car that meets their needs & budget.

• Assistance with trading in your old car

Tips

• Buy at month end (not just year end)• Look for rebates • Everything is negotiable except at Carmax• Buy close to invoice as possible• Don’t shop alone• Get a mechanic inspection• Get pre-approved first

Questions?

Thank you for Attending!

Still have questions?

Contact us anytime at:Financing: 770.476.6400 ext. 3

Car Buying Service: 770.476.6471www.georgiaunitedcu.org