Auto Loans — the offers are everywhere. Some are greater than others while others just seem like a great deal, but are they really?
“0% for 6 months!” “No payments for 90 days!” “Cash back up to $3000!” “We’ll give you more for your trade!”
How do you know which great deal is really, well…a great deal?
While some could prove to work in your favor, here are a few auto finance gimmicks and deals to be mindful of.
- Too-Good-To-Be-True advertised discounts and rates. Not all dealers are created equal. Some use lower-than-usual rates and price discounts to draw buyers in. The deal could be on one particular vehicle that may or may not still be available. Be sure to get all the details before sitting down in a finance chair.
- Don’t be bullied by special discounts and offer time limits. If you’ve been quoted a price with a substantial discount which also comes with a fast-approaching expiration date, don’t feel you need to make a hasty decision without time to consider. The expiration date of a promotion should be clear and upfront and shouldn’t make you feel rushed into making a decision to buy.
- Focusing on the payment vs. the purchase price and terms. While it’s important to make sure your payment falls within your means, don’t get caught up in what you would prefer to pay each month and neglect the details of the purchase price and finance terms. Paying less each month, but stretching the terms longer to afford a higher-priced vehicle could prove to cost a lot more in the long-run.
- Substantial offers to pay off your trade. You know what your trade is worth—so does the dealer. If you’re offered much more than your trade is typically worth, be sure the overage hasn’t been retrofit into the finance side of the deal. Traditionally, less is offered for your trade than its worth, so research the value before signing on the dotted line.
- Offers of 0% vs. Cash Back. One way or another, a lender is going to profit from the sale of a vehicle. 0% offers usually work for the dealer by increasing the sales price of a vehicle. Cash back deals are usually contingent upon the rate you pay or the price of the vehicle—sometimes both. Give a good look to the fine print of these deals and consider traditional pricing and financing before these.
Get a quote from your credit union before finalizing a loan with a dealer. Your credit union is here for you with one goal – to help you afford life. It doesn’t matter where you find the car you choose (we do have some great friends at local dealers as well!), we will always check the values against the asking price, we’ll always give you a fair rate and we will ask for a copy of the vehicle title to avoid unnecessary hassle when it comes time to register your vehicle. Our GAP and Warranty programs are very affordable and save you from hidden dealer fees. You can protect your family and yourself in the event of unfortunate circumstances with our Optional Credit Life or Credit Disability Protection. We share a financial relationship built on trust and value your membership as we work to fit your needs. You’ll always see the terms and conditions of our offers up front and receive fair pricing and rates on all the products and services we offer. With that in mind, you can feel comforted knowing an auto loan through MembersFirst is a great decision.
Ready to purchase your next vehicle? Check with us first! We have loan programs for everyone, in every stage of life. Whether you’re just starting out on your journey to build credit, doing just fine or need a fresh start, look to MembersFirst! Visit membersfirstga.com, give us a call at 404-978-0080 or stop by your local office to get the process started today.
And, if you’re ready to start looking for a fantastic car, take a look at some of the services offered through MembersFirst: