Pre-Approval

As necessary as a car is in beautiful upstate New York, most of us are not crazy about haggling with dealers. First, there’s the price of the vehicle, then the “add-ons”, then the financing portion – it’s a real headache. You know what we’ve learned in over sixty years of car lending? We’ve learned that buyers with pre-approved loans control the negotiation, because they don’t have to quibble. No “finance managers” who make cash for the dealership, no waiting to “see if you get approved”, no salespeople trying to put you into more car than you can afford. You walk in, point to the car you want, hand over your check, and drive away. Want to be the dealership’s “worst nightmare”? Visit us first. You’ll save money, time, and a whole lot of aggravation.

GAP Insurance

Most people know that a new vehicle starts to depreciate the minute you drive it off the lot. So, what happens if your brand new Sport Ute gets T-boned by a minivan on the way home? You could be stuck paying off a car you can’t drive, and nobody wants that. The time will come when you owe more on your car than it’s worth. GAP – Guaranteed Asset Protection – pays the difference between what the insurance company pays and the amount you still owe, up to 125% of the vehicle’s value! Purchase GAP insurance at the time you close your loan. Our GAP policy is only $150, which we can add right to your loan. The payment difference is literally pennies, but the peace of mind is priceless. GAP is the smart and affordable choice to protect your investment.

Auto Insurance

One of the best reasons to get a quote from TruStage is that they offer discounts for credit union members. We love that idea.

WINNING THE CAR BUYING GAME

When you’re looking for a car, you want the best car at the best price.  To negotiate the best deal, it’s good to understand common car sales “tricks of the trade.” Once you know what they are, you become the dealership’s worst nightmare—an educated consumer.

Negotiate one thing at a time.

Car dealers like to combine the price, trade-in and financing into a lump. They do this by asking what you can afford to pay each month. Don’t answer that. They use this information to inflate the figures in their favor. Avoid this by negotiating one thing at a time.

Start with the price. Negotiate the car price as if you were paying cash, with no trade-in. To get the best deal, negotiate the price of the car based not on the sticker price, but on dealer cost. Dealer invoice price is available online, but that usually isn’t the price the dealer paid. Dealers get hidden incentives to give them more profit per vehicle. Knowing the dealer price gives you the most haggle room. The dealer price is the invoice price minus incentives, holdbacks or rebates. Make it clear that you want the lowest possible markup over this price.  Don’t be afraid to haggle hard. Once you’ve settled on a price for the vehicle, then discuss your trade. Trade-ins on used vehicles are available from sources like the NADA Book or Kelley Blue Book. Know what your trade is worth when negotiating a price for your old car. We can help you find  the “book value” of your trade-in.

Financing Options 

Dealers like to arrange the financing on your vehicle because they get paid commissions from banks. Most dealers will choose financing based on which lender pays the highest commission to the dealership, instead of the deal that is best for you. Financing through the dealer can end up costing you more.  Let’s be clear here: dealers are usually not acting in your best interest when they finance a vehicle. They have something called “indirect lending” agreements with banks, which pay the dealership for every loan the dealer sends the bank. Guess who pays for that? You do.  MCT does not have “indirect lending”, because we work in your best interests. When you get your loan through us you will save time and money. Call us at 842-1840 and ask what our auto loan rates are. Chances are we will be lower—in some cases significantly so.  “Special financing” offers may sound good, but there are downsides that end up costing you more. For instance, “no down payment” means your monthly payments are higher and you pay more in interest. Also, keep in mind that most buyers do not qualify for “0%” or other advertised low rates. These are to get you in the door. Once inside the dealership, you will probably find you don’t qualify for the “special” rate. That makes you another buyer they make money on with financing. Getting pre-approved for your auto loan with MCT means you get the best rate for you. It also takes the financing out of the deal equation, tipping the balance of power in your favor.

Avoid “option-loading”

Salespeople try to increase the profit margin on vehicles with optional equipment. Know which options you want and which you can live without. While some options can be purchased individually, most are offered only as part of an “option package,” designed to make you pay for things you don’t want to get the few you do. Option prices, too, are negotiable. The price on the sticker isn’t the price you must pay. Don’t be afraid to bargain on options. Dealerships will try to sell you items like rust-proofing, fabric protection, paint sealing, or etching vehicle VIN numbers on windows. Don’t waste your money. What costs the dealer about $90 can end up costing you $1,000 or more. Vehicles are already treated to protect against rust. Upholstery is treated at the factory. If you like, you can treat the upholstery yourself with a can of spray-on protectant. Paint sealants and waxes are available for under $15 from auto parts or department stores. No state requires VIN etching, but if you’d like your vehicle’s VIN number etched, do-it-yourself kits are available for about $25.  If “dealer prep” shows up on your bill of sale, ask what specifically was done to “prep”  the vehicle? The salesperson will list things like checking tire pressure, washing the vehicle, aiming headlights, etc. This should all be included in the vehicle sale price. If these ”dealer prep” fees appear on your bill of sale, refuse to pay for them.

Extended warranties

At some point the dealership will try to sell you an extended warranty, which can cost thousands. Consumer Reports recommends not purchasing an extended warranty unless you plan on keeping a trouble-prone vehicle for an extended period of time after the manufacturer’s warranty runs out. Most manufacturer’s warranties are sufficient, with bumper-to-bumper coverage of at least three years or 36,000 miles. Powertrain coverage often lasts longer. If you feel you must have an extended warranty, those offered by the vehicle manufacturer are typically better than those offered by third parties.

Remember – we’re on your side

As an MCT member, you are an owner of the credit union. We work for you. You can trust us to get you the best possible rates, payments, and advice when it comes to buying your next new or used car.

We Are Here To Serve your vehicle loan needs.

We want to help guide you through the process of buying or upgrading your vehicle. Whether you are buying your first car, or your dream ride, we’re with you every step of the way to help save you time, and money.

Advice & Support

We are always at your service, to help you make the best choices for your future.

Fast, Easy, Stress-free

Our process is as fast, easy, and stress-free as possible. Let us help you make your dreams come true, whether you are buying your first car or your dream ride.