June 27, 2020KNOW Before You GO: Car Shopping

There’s lots of excitement when you are shopping for a new or used vehicle. There’s the good excitement of test–driving those shiny, new cars. But there’s also the nervous excitement of making a big financial move. Whether you’re a car-buying novice or you’re a car-buying guru, we have a few tips that will calm you enough to make a cool-headed decision.  

Get Pre-Approved 

Your most important step is to get a pre-approval from the PEFCU. With a pre-approval, you’ll know how much you can spend before you go shopping and you’ll also have an advantage during dealership negotiations. Why? Because dealers know they can‘t charge you more than your pre-approved amount. You can apply for pre-approval at www.pefcu.com, via the PEFCU Mobile Banking app, or by visiting your local branch.  

Do Your Research  

Before you even step foot into a dealership, make sure to do your research. The Internet is a good place to start.  

• Research what others are paying for the same vehicle in your area. Kelly Blue Book is a great start.  
• Compare prices from different dealerships. 
• Check for rebates and exclusive deals. 
• Get your vehicle’s Trade–In Value from www.NADAGuides.com. 
• Pull a car history report (if buying a used vehicle). 

Check Your Insurance 

Don’t forget to check your insurance costs before making a deal. Certain vehicles may have higher insurance costs. The monthly car payments may be affordable, but don’t get caught off-guard by higher than expected insurance costs. Give your insurance company a quick call to find out what your new insurance premium will be before signing your name on the dotted line. 

Know Your Dealerships 

Did you know there are different types of dealerships? Some dealerships focus on individual car sales—they to get the most out of each vehicle they sell. Other dealerships are volume dealers—their goal is to sell a certain number of vehicles within a set time to get incentives from automakers.  

Volume dealers often offer higher discounts and/or incentives to meet their quotas. You will often hear them advertising best-selling vehicles and special month-end sales.  

Ready to Start Shopping? 

If you’re ready to buy a new or used vehicle, we’re ready to help. To get Pre-Approved, stop by any PEFCU branch location; or apply online at www.PEFCU.com or via the PEFCU Mobile Banking app.  

 

 

Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel.