What you do before you walk into the showroom just might be the most valuable time you spend shopping for a new car. Here are a few tips that could make a big difference when you look to buy your next car. Remember that you can always go to your credit union’s website and look for the AutoSMART link for more details on each category.

1. Determine How Much You Can Spend

   According to most financial planners, a monthly auto payment should be no more than 20% of your gross monthly income. Also, know your credit score up front and what it means to you. To obtain your credit report before you visit the dealer, and to access online payment calculators, go to your credit union’s website and look for the AutoSMART link.

2. Research Online

   Try not to let your purchase decision be an emotional one. There is an incredible amount of information available on the internet and the more you know, the better prepared you will be to make that all important final decision: what car is right for me? Go to your credit union’s website and look for the AutoSMART link for researching new, used and pre-owned vehicles.

3. Know How Much the Dealer Paid

   Knowing the invoice price on a new vehicle can help you negotiate a better deal. This is the price the dealer paid for the vehicle, excluding any costs for advertising, destination charges or special regional pricing. Go to your credit union’s website and look for the AutoSMART link to research new vehicle pricing. On a used vehicle, it’s important to know the wholesale and retail values. The trade-in values section can help you find this info.

4. Set Your Price

   Figure out the cost for vehicle options and subtract any rebates or incentives currently offered for a new vehicle. Used vehicles are also a smart option for value conscious shoppers. Also, consider whether you will be paying cash or will be financing your vehicle. If you have a trade-in, find out how much it is worth. Research trade-in values and make sure to factor in the condition of your vehicle.

5. Contact the Dealer

   Through our program you can work with local CUDL AutoSMART dealers to receive pricing and availability on new or used vehicles before visiting the dealership (either online or by phone). By phone, make sure to detail all options and descriptions so that the information you receive will compare apples to apples. For online requests, the vehicle and options you have selected are sent directly to the dealer. This program provides you with a contact, usually from the dealer’s Fleet or Internet Departments, who will work with you from start to finish with your vehicle purchase process. Use this person as a resource. Working with fleet personnel helps ensure that you get a better deal, since they usually work the entire deal by themselves without a lot of intervention from other managers at the dealership.

6. Negotiate

   Negotiate up from invoice, not down from Manufacturer’s Suggested Retail Price (MSRP) or "sticker" price on a new vehicle. On a used vehicle, negotiate up from wholesale value, not down from retail value.

7. Credit Union Financing Is Your Best Bet

   Don’t be fooled by 0% or low-interest dealer financing. We’ve done the math for you! A better option is always to take the upfront dealer rate discounts (or rebates) and then go with low credit union loan rates. The 0% "special" isn’t that special!

8. Test Drive

   Don’t ever buy a car without taking a test drive in the vehicle you are planning to purchase, even with a new vehicle! With a used vehicle, we highly recommend that you request a conditioning report and have your own mechanic inspect the vehicle. Some dealers now call these conditioning reports "certification." A certified used vehicle is usually a little more expensive, but can include a warranty.

9. Close the Deal

   Don’t forget to use the information you researched on your trade-in to get the most for it. Have the dealer show you the price for your trade separate from the deal. Dealers often package the amount offered on your trade with the final figure of your monthly payment. It’s important that you get the best overall purchase price, a reasonable monthly payment, and a good deal on your trade.

10. Carefully Consider the Extras

    Once you reach the Finance & Insurance (F&I) office, the dealer will offer you various extras to protect your vehicle or loan. Listen closely to what the dealer is offering, and ask yourself which extras makes sense to you and add value to your purchase. Of all the choices you might be offered, we recommend that you consider Guaranteed Auto Protection (GAP) and a Service Contract, if you’ve financed for a term longer than 36 months.

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