What's the first thing a smart buyer does when they get in the car buying mood?
Head to a dealership! Slow down and do your homework! Start watching for "sale" advertisements.
What's the primary job of even the best automobile dealership?
Help you save money. Maximize dealership profit.
What's the main danger of being a Payment buyer?
The dealership will want you to spend less money. Its easier for the dealership to work you on payments, and therefore make a larger profit.
What's the biggest danger of buying on your first visit to a dealership or web site?
Your neighbors will be jealous. You won't have the chance to compare deals or think clearly. You won't have enough time to clean out the trunk on your trade.
What's the main problem with low interest rate sales ?
The manufacturers are really losing money and it might hurt their stock prices. The financing institutions will go broke loaning money at those cheap rates. The rates aren't given to many customers and are really just a device to get you to the dealership.
What's the only way to really know a dealership's financing rate is the cheapest rate available to you?
Finance two vehicles, one at the dealership and one at the credit union, then give one to your neighbor. If the dealer says, “Gee, I'm not making much money on this one.” Bring a copy of the completed dealership finance contract to DCU before you sign it.
What does it tell you if a dealership won't let you leave with a copy of your completely filled out contract before you sign it?
The dealership can't afford a copy machine. The disappearing ink will disappear by the time you get home. The dealership knows you'll find a better loan deal elsewhere. The dealership is afraid you're going to lose the contract.
DCU lends money on used vehicles at new-vehicle rates. Most dealerships charge much higher interest rates for used-vehicle loans than for new vehicle loans.
True False
Can a DCU loan beat often save you money over manufacturer 0% financing if you take the rebate instead and use it to lower the price of the car?
True False
Cash buyers have an easier time negotiating the price of a vehicle.
True False
The StreetWise program turns every credit union member into a cash buyer.
True False
What is "Loan Cash?"
The amount of cash you'll loan a friend. The down payment you must make to get your loan. The amount of cash your loan payment will buy you.
What's the definition of Available Cash ?
All the money in your wallet. All the cash in your local credit union account. The net amount of funds available to you now to buy a vehicle.
Available Cash is made up of the amount of cash the payment you can afford to make each month will buy you, any equity in your trade-in, and any other cash you have to help you buy a vehicle, such as a rebate check.
True False
Which is the correct amount of "equity" in this scenario: You have an old car worth $9,000; you owe $3,000 on it. Your equity is:
$12,000. $6,000. None of the above.
What is the correct amount of Available Cash in this scenario: Your old car is worth $9,000. You owe $3,000 on it. The $400 monthly payment you can afford to make for 48 months will buy you $16,000. You have $1,000 in savings to help you buy a new car. Your Available Cash is:
$28,000 $23,000 $6,400
What does lowballing mean?
Driving around with bad shocks. Throwing an under-handed pitch in a softball game. Being offered less for your trade-in than it's actually worth.
Smart shoppers at buying services need not be cautious and move slowly.
True False
Many DCU members have saved literally thousands of dollars each by refinancing auto loans from dealerships at the DCU.
True False
If you've already financed a vehicle at another lending institution, you should:
Ignore the fact you may be paying too much on your current loan. Call us or stop by, apologize, and promise to never do that again. Ask DCU how much money you might save by refinancing here.
Balloon Payment loans can get you in a lot of trouble because
Your loan booklet could float away, if it's hooked to the balloon. You owe a whopping payment at the end of your finance contract. Breathing helium can cause brain damage.
Walk-away Balloon loans like the one DCU provides allows you to literally walk away from that big final payment.
True False
What's the main danger of both Leasing and Walk-away Balloon finance plans at most dealerships and on-line financing services?
They don't make enough money on you. Big excess mileage penalties because the residual value was based on far less miles than you actually drive.
If you drive 40,000 miles a year, what is the mileage penalty you must pay after three years on most dealership Walk-away Balloon loans?
$9000. Please tell me it's not $9000. You mean it really is $9000?
DCU's credit union vision statement is that all members achieve financial well-being. .
True False
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