| We all dread walking onto that car lot | | | | in advance. Credit Unions frequently |
| and being approached by a salesman that | | | | have very good rates. You can also find |
| we just know is going to try to pressure | | | | some lenders for your area and their |
| us into buying today and spending more | | | | published rates by visiting If your |
| than we want to spend. It doesn't have | | | | lender offers extended warranties, be |
| to be that way. With just a little | | | | sure to get the pricing and factor that |
| preparation, you can make sure that you | | | | into your payment. Don't tell the dealer |
| get a great value and protect your | | | | that you are paying cash. Let them |
| investment Don't fall in love with | | | | believe they will be doing the financing |
| having a brand new car. The newer the | | | | because they make more money when they |
| car, the worse it depreciates, with the | | | | arrange your loan. The old idea of |
| first year being the very worst. By | | | | getting a better deal with cash simply |
| finding a used car that is still under | | | | does not apply any more. The salesman |
| factory warranty, maybe two or three | | | | may get excited about your cash, |
| years old, you will avoid the worst of | | | | primarily because he's paid to be |
| the depreciation and you can usually buy | | | | excited about anything you say, but the |
| a relatively inexpensive extended | | | | person making the decisions only sees |
| warranty that will cover everything that | | | | the bottom line. If he believes the |
| the factory warranty covers. Look for a | | | | finance department can recover some of |
| warranty that has a small list of | | | | the lost profit on the sale price, he'll |
| excluded repairs rather than a big list | | | | be more willing to sell the car for |
| of items that are covered. In the | | | | less. After you have agreed on a price, |
| warranty book that originally comes with | | | | it will be time to sit with the finance |
| a car, you will see a warranty that | | | | manager and, if he doesn't give you a |
| essentially says that everything except | | | | better interest rate than you found on |
| certain normal wear and tear items | | | | your own, hand him your bank check or |
| (alternators, tires, batteries, light | | | | draft. Be sure to get his price on the |
| bulbs, etc) is covered. You want to look | | | | warranty. Even if he beats your bank's |
| for similar wording on your extended | | | | rate, a higher priced warranty could |
| warranty. A long list of covered items | | | | outweigh the savings in interest. The |
| is always much shorter than the list of | | | | simple test is to compare payments over |
| things that can actually break. If the | | | | an equivalent number of months. The |
| warranty company is able to claim that a | | | | total that comes out of your pocket is |
| covered item broke because of the | | | | really all that matters. Don't be afraid |
| failure of a non-covered item, they will | | | | to walk on a deal. By doing your |
| deny the claim. Be sure any warranty is | | | | research, you will know if you are |
| transferable because that will make a | | | | getting a bargain. If a dealer paid too |
| big difference in resale value and | | | | much for a car it's not your problem and |
| desirability when it comes time to sell. | | | | you shouldn't be penalized. You can find |
| Once you have decided on a make and | | | | another car. The value of the car in two |
| model, decide how much you are willing | | | | years will have nothing to do with the |
| to spend on it buy researching the value | | | | amount you spend on it today so why lose |
| with NADA at or Kelley Blue Book at | | | | more than you have to? |
| Try to pay somewhere between trade value | | | | Kevin Maher is the Agency Liaison at |
| and retail value at a dealer. Mileage | | | | Debt Management Credit Counseling Corp |
| makes a difference, so be sure to know | | | | (DMCC), a 501c(3) non-profit charitable |
| what effect low or high mileage has on | | | | organization offering free financial and |
| the value. Have your financing arranged | | | | budgeting education across the USA. |