Issue link: http://www.epageflip.net/i/884394
AUTO LOANS AACreditUnion.org | | 37 B U Y I N G N E W C A R S T H R E E S E PA R AT E T R A N S A C T I O N S It is understandable that buyers get anxious and confused when negotiating a new vehicle purchase. Understanding one fact will help to alleviate those feelings: Buying a vehicle is not a single transaction, it is three. 1. Negotiate a fair purchase price for the vehicle you want to buy. American Airlines Credit Union's online car shopping resource, CUDL® AutoSMART TM *, provides manufacturer invoice pricing for new vehicles. You should always negotiate UP from manufacturer invoice prices and not DOWN from Manufacturer's Suggested Retail Prices (MSRPs). As a general rule of thumb, if you can purchase a domestic vehicle for $100 to $300 over cost, you have a good deal, and so does the dealer. You get a fair price and the dealer gets a fair profi t. 2. Negotiate how much trade-in credit you will get for your old vehicle. The amount of trade-in credit should have no bearing on the purchase price of your new car. They are completely separate values. 3. Arrange your fi nancing. This step can be the most risky. Consumers often pay more for fi nancing than is necessary. The interest rate charged by most lenders is generally based on consumers' credit scores. Consumers with "good" credit histories (no bankruptcies, no charged-off debts, no collection accounts and no late payments) pay lower interest rates than consumers with bad credit histories. Contact any American Airlines Credit Union loan offi cer to get pre-approved or apply online before visiting dealerships. Auto Loan Basics Go new Try used B U Y I N G A N D E VA L UAT I N G U S E D C A R S For many of us, a used vehicle that is wisely bought can be a much better buy than a new vehicle. Buying used vehicles can be risky, so you should do some legwork beforehand. 1. Before you purchase, contact an American Airlines Credit Union loan offi cer. You can get a free AutoCheck Vehicle History Reports (VHRs) to learn whether vehicles have been totaled, have salvaged titles, have been stolen or have had their odometers rolled back. 2. Determine wholesale values for vehicles and negotiate up from those to determine purchase prices. • American Airlines Credit Union loan offi cers use the NADAguides, an offi cial used car guide, to determine a vehicle's trade-in (wholesale) value. • American Airlines Credit Union's online pricing service, CUDL® AutoSMART TM , provides retail and wholesale values on used vehicles. • Compare prices on used Enterprise Car Sales vehicle lots and classifi ed ads. 3. Have vehicles checked by certifi ed mechanics. Even though fees can range from $75 to $175, it can save you money in the long run. Several sources are available: your trusted mechanic, local Auto Appraisers or diagnostic or service centers. Auto Critic mechanics will come to any location within the Dallas/Fort Worth area. Call (817) 460-8388 or (972) 386-8388. 4. Repair costs should be subtracted from the purchase price you are willing to pay. Keep in mind: A vehicle worth $7,000 that needs $1,000 in repairs is only worth $6,000. Our goal is to help you buy wisely and save money, not simply to provide you with a loan Advocacy/Services * CUDL AutoSMART and its other marks are the registered trademarks of CU Direct Corporation.