The Credit Union Auto Buying Service's automotive expertise is a result of our ongoing interest in industry trends and characteristics. We’re happy to share the latest news, promotions and events with you and hope the information will benefit your overall shopping experience. As you know, there are many new cars from which to choose, and we believe more information can help you make smarter choice when it comes to choosing your new car.
Read the fine print! Many times, 0% financing restricts the length of months you can finance your loan to 12 – 36 months, which significantly increases your monthly payments.
Other items to aware of:
Most of the time you are better off taking the rebate that the dealership is offering and financing through your credit union. Below is an example of how you can save in such a situation:
Manufacturer’s Financing
0% APR for 36 months |
Allegacy Financing 4% APR for
48 months |
|
| Vehicle selling price | $18,000.00 |
$18,000.00 |
| Manufacturer’s rebate | -0- |
$2000.00 |
| Amount financed | $18,000.00 |
$16,000.00 |
| Interest over Loan period |
-0- |
$1340.50 |
| Total Cost | $18,000.00 |
$17341.00 |
| Monthly payment | $500.00 |
$361.00 |
By financing through Allegacy Federal Credit Union, you save $139.00 in monthly payments and $658.00 over the length of the loan period. As you can see, you would certainly save money by taking advantage of the manufacturer’s rebate offer and financing your vehicle through the credit union instead of taking the 0% financing offered by the dealership.
Selling your own vehicle to a private party can be cost-effective. In contrast, trading in your current vehicle certainly seems much easier!
Before launching out on your own, consider the car prep, required state and emissions checks, cost of your own personal time, and the “characters” you may meet along the way – each can take a unique kind of toll on you.
Benefits of either choice:
Trade-in Advantages |
Private Party Advantages |
| Quick and easy | Can be more profitable |
| Dealer handles the paperwork | You control the transaction |
| Dealer handles vehicle reconditioning | Right buyer is motivated |
| Trade-in value can be negotiated | Provides cash for down-payment on next car |
Another option is to donate your car
Be sure to research the value of your vehicle before contacting
the charitable organization your are considering donating to.
Be sure there are no hidden towing charges or other fees. By donating
your car to a charity you should be able to get a tax write-off
and feel good that you are doing a nice deed.
Gas Mileage Tips
Here are 5 tips from the experts on stretching your gas mileage:
Actually, color does count. Your car will hold it’s value better in a more popular color, so it is important to give the color consideration. This year silver is the most popular color of nearly one-quarter of all vehicles sold in the united states. White is the second choice of Americans and black is not far behind.
So when you are considering purchasing a new vehicle take a second
look at your color choice, especially if you are an individual who
likes to trade vehicles frequently.