Car Shopping? Here’s How to Drive Away Happy

Ready to find a new car that’s just right for you, but dreading the car-buying process? We’ve all heard stories about haggling with salespeople and spending hours on end at a dealership. But car buying actually can be exciting and fun if you start with a plan.

Whether you’re buying new or used, purchasing or leasing, we’ve got you covered with 5 tips to navigate the car buying process and put you in the driver’s seat with confidence. Meet the D.R.I.V.E. Method — your secret weapon in moving through the car-buying process like a pro.

Decide on Your Path

With so many possibilities on the road ahead, the best place to get started is by taking inventory and making some important decisions.

First, consider what type of vehicle you need. Is it for daily commuting, family trips, or something else? Someone who uses a car to run errands a few times a week will need something very different than someone who hauls heavy equipment around for a living. If you’re looking at a two-hour commute to and from work every day, you’re going to want a fuel-efficient car. It doesn’t make sense to put a lot of miles on a gas guzzler, no matter how pretty it is. Hybrids and electric vehicles can offer the greatest fuel efficiency, so it may be worth it to look into those options. On the other hand, if you’re on a tight budget and you don’t put a lot of miles on your car, fuel efficiency may not be a huge factor in your decision. An older, less fuel-efficient car can be cheaper and your insurance costs may be lower, which could save you money in the long run.

You’ll also want to think about the physical space you need to drive comfortably. How often will you have passengers? Will they fit comfortably into the back seat? Do you need room for bulky car seats? Will you be transporting camping gear or other large items regularly?

While knowing the main purpose of your new car before buying seems like a no-brainer, it’s easy to be distracted by the newest, shiniest vehicles out there.

Next, determine how much you can afford. Before you tempt yourself with the nicest and newest cars on the lot, carefully consider your finances and decide what you can afford. When you think you’re ready to buy, follow these steps to leverage your credit and get the best deal on your new car:

1. Pull your credit report to see if you have any adverse accounts. Remember that your credit matters when buying a car. Even if you’ve paid your bills on time and don’t have extensive debt, it’s still good to check just to make sure everything is accurate, and you didn’t miss something. If you do find you have any issues, take care of them. You might have to pay off outstanding debt, deal with debt collectors, or even call the credit reporting agency to correct inaccuracies.
2. Review and calculate your debts. Your credit report will not include your credit score unless you pay for it. However, it will have all your debts listed and whether you’ve made timely payments.
3. Assess your income and expenses. Do you make enough money to pay off your debts? Are you totally debt free? The answer to these questions is important because your loan officer will see your credit report and may ask you questions about it.

Third, decide whether purchasing or leasing is right for you. Your UFCU car lending specialists can help you weigh the pros and cons of buying versus leasing, considering things like how long you plan to keep the car, how much you will drive it, and how much cash you have for a down payment.

Research Your Options

Now is the time to spend the extra time researching and shopping around. Research Edmunds.com and Kelly Bluebook so that you are well-versed in the manufacturer’s suggested retail prices for the cars you are interested in. Looking for a used car? Do your same due diligence. Become familiar with the price ranges for each model by year, mileage, and features.

And consider expanding your search area. You may potentially benefit from looking beyond your neighborhood dealership. If you are willing to leave the Central Texas area and head out to San Antonio, Houston, or Dallas, you might have more luck finding the right car at the right price.

Many manufacturers and dealers entice buyers with incentives including cash back and deep discounts to move their car inventory. If you’re looking to buy a new car, research dealer incentives and come to the dealerships prepared with competitors’ information.

If you’re planning to finance, know your trade-in value, and determine your “available cash” so you’re in the best position to negotiate. Get to know your financing options and how rates affect you. Compare monthly payments to the overall loan cost. You’ll also want to explore insurance coverage and what makes sense for you.

Imagine Your Ideal Game Plan

Your game plan includes getting informed on the sales tactics dealerships may use, and how to keep a level head throughout the negotiation process. Remember: Everything is negotiable at the dealership (this goes for price, trade-in value, interest rate, add-ons, and fees). When visiting dealerships, come prepared with your research and ask dealers what if anything they have added to the manufacturer’s suggested retail price. They may not be willing to negotiate those fees off or down, but at least you know what you are paying for and can make an informed decision about whether to do business with a particular dealership.

Get a Vehicle Buyer’s Check

Preapproval with UFCU means you’re most likely getting the best interest rate you qualify for. But a UFCU electronic Vehicle Buyer’s Check (eVBC) just might be the quickest, easiest way to buy a car from a dealership. It gives you the ability to pay for your vehicle as a “cash buyer” at your convenience. Many UFCU Members know about, or have already taken advantage of, our traditional paper Vehicle Buyer’s Checks (VBCs). These convenient checks are issued by UFCU directly to our Members, to spend at an auto dealership when they are ready to seal the deal. An eVBC is simply the modernized, electronic version of this process.

Execute!

Now comes the fun part. Start shopping! Hit the dealerships, knowing your ideal vehicle and game plan, and start test driving your options. You’ll be able to narrow your list of possibilities pretty quickly by actually sitting in the driver’s seat, testing how it handles on the road, and seeing how the space will work for your needs. Remember, you have power as a buyer. If the price isn’t right, you can negotiate or walk away at any time.