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Financing a Car? Watch Out For These Dealer Tactics And Save Thousands

Remar Sutton, DCU StreetWise National Spokesperson
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Planning to finance a car soon with DCU? If you're smart, you've gotten yourself approved for one of DCU's “Auto Loan Checks.” A DCU Auto Loan Check is as good as cash, and allows you to negotiate with the dealer as if you are a cash buyer—the best way to negotiate. Determine the selling price, then simply fill out the Auto Loan Check.
Tens of thousands of DCU members have used Auto Loan Checks over the past years, and it's a great way to keep your transaction straightforward at the dealership.
Trouble is, some dealerships don't want you to finance with DCU and will do just about anything to switch you to their financing. Why? For one simple reason: the dealership wants to make a bigger profit on you.
Unfortunately, some sales personnel at these dealerships are telling our members that DCU's Auto Loan Checks won't be accepted at their dealership, and are tricking our members into applying for loans directly through the dealership. When this happens, our members often pay thousands more for the dealership loan and thousands more in total for such dealer products as extended service agreements.
How do you protect yourself from this? Just follow these steps:
  • Be wary of any dealership that won't accept an Auto Loan Check. If a dealership is willing to use unethical tactics like this to get you to switch to their financing, they are probably using unethical tactics in other parts of the sales transaction.
  • Call the DCU Information Center and tell them you are having a problem with a dealership. Give the Information Center the dealership name. The Information Center may be able to help you immediately. If the Information Center is closed, I recommend that you leave the dealership and not conclude your sale until you can talk to DCU. The Information Center can be reached at 800-328-8797 and the hours are Monday — Friday 8 am to 8 pm and Saturdays from 9 am to 3 pm (EST) .
  • Remember that the only reason a dealership will refuse a DCU Auto Loan Check is to force you to finance with the dealership. Don't fall for that tactic, if you value your money. If the dealership tries to pressure you into financing with them, leave the dealership immediately and notify us.
  • Be prepared for tactics like this. The car buying transaction is a complicated process filled with pressure and confusion. You don't have to put up with that. Head to the web right now, and read our Streetwise “Auto Buyers Survival Guide.” Our guide is the most comprehensive buying guide in the country, and will teach you how to handle dealer tactics, help you get the most for your trade-in, and—most importantly of all—help you keep your money in your pocket.
I have investigated and written about the auto industry for nearly thirty years, and I always find one clear difference between dealerships and a good credit union like DCU: At the dealership, you always have to be on your toes, and you always have to be ready to negotiate everything—the value of your old car; the price of the new car; the cost of financing; the cost of service agreements and other products. Everything is negotiable.
But at the credit union, you never have to negotiate. Every time, you will be given the lowest price and best product you qualify for, regardless of your negotiating skills.
Isn't that a good reason to finance with DCU, and a very smart reason not to fall for unethical dealer tactics?

So, what do you think?
If you find this review helpful, please pass the word to your friends. Also email me* with any comments or suggestions.
Remar Sutton

Prepared by Remar Sutton and Associates for DCU, November 2005. All rights reserved.
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Digital Federal Credit Union
Digital Federal Credit Union
220 Donald Lynch Boulevard
PO Box 9130
Marlborough, MA 01752-9130
508.263.6700 • 800.328.8797
 DCU is an Equal Housing Lender    Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. Select for more information.
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