Streetwise Vehicle Buying Tips
Get STREETWISE Before You Buy Your Next Vehicle – it could save you a lot of money!
Buying a vehicle is a task most of us dread, typically because they are so expensive, and the complexity of pricing and financing leaves us with no idea how much we are actually paying – or should pay. Most often, we try to get the experience over as quickly as possible, but then we live with the costly consequences for years to come, month-after-month until the payments end. Then the vicious cycle starts again with the next vehicle we purchase.
Well, this doesn’t have to continue. We can help you turn things around and make your next vehicle purchase a pleasant experience by preparing you beforehand with some of the knowledge savvy buyers use when they buy and finance vehicles. We’ve prepared the following tips to add confidence to your next purchase making you more Streetwise in the car buying process because the more you know, the more money you can save!
Decide How Much You Can Afford to Pay
Before shopping for your next vehicle, start by deciding how much you can afford to pay monthly, and stick to it! Then decide the maximum time you want to pay for your vehicle: 5, 6, or 7 years. You can use this as a guide for selecting the vehicles that fit into your budget. For example: at 1.99% APR* for 60 months, a $20,000 loan would only cost you $350 per month, and a $30,000 loan would cost $526 per month (payments can be estimated at $17.52 per $1,000 borrowed). All too often buyers reverse this process and start by selecting a vehicle, and then find themselves paying a larger monthly payment than they can comfortably afford. By determining your maximum payment before going shopping, you can prevent making a costly mistake!
Do Your Homework—It Pays Off
Think about it: if you were to save $1,000 or more on a purchase by spending four to six hours researching dealer costs, vehicle values, retail prices, rebates, and incentives, that’s a fair return for your time. On both new and used vehicles, all this information is available free through our website. You can also compare customer reviews on different makes, models, manufacturers, and dealerships. By doing a little beforehand research, you can be confident you’re getting a great price for your purchase and you’re buying from a reputable dealership!
Get Pre-Approved Before You Go Shopping
Before visiting a dealership, apply for a pre-approved vehicle loan with RiverLand. Having a pre-approved vehicle loan may put you in a stronger bargaining position when you negotiate prices with a dealer or private owner. There’s no cost to apply and we can tell you how much you are eligible to borrow and what rate, terms, and payments you can expect.
Shop Till They Drop
Time is money and when it comes to car buying, the more time you spend comparing prices, the less money you may end up paying. Once you decide on the type of vehicle you’re buying, get the dealer invoice pricing before you start shopping – it can be found free through our website and can give you an idea of the price of the vehicle and available options. This could help you avoid paying more than necessary for your purchase.
Shop Around
Never buy the first time you visit a dealership. Salespeople may push you to purchase on the spot hoping to get you to make an impulse buy because they can make more money if you don’t take time to compare pricing. Don’t be hasty. Take as much time as you need to shop around and be flexible about the dealership where you make your purchase. Consider buying in another city if they offer better pricing. Warranty work and routine maintenance can usually be done at any authorized dealership for the make and model of your purchased vehicle, regardless of their location. Confirm this before you make a deal, that way you won’t feel pressured to buy close to home. A Streetwise buyer takes their time and comparison shops before making a major purchase!
Compare Financing
But be aware that when shopping for financing, dealers often offer rebates, special rates, and a lot of confusing double talk that gets even more complicated when you have a trade-in to consider. So, don’t just compare annual percentage rates (APRs). Instead, compare the dollar amount and number of payments over the term of the loan to make sure you are paying the lowest amount each month and in total. Upon request, one of our experienced loan officers will compare the financing on any of your buyer’s invoices to ours to help you avoid getting taken for a ride!
