As the holidays approach, gift cards remain a popular gift option, but they’re also a target for scammers. These fraudsters use tactics like phishing and tampering with physical gift cards to steal funds before they can be used. To protect yourself and your loved ones this season, it’s important to stay aware of these risks.
Having a well-stocked emergency fund is important. But so is saving for retirement. So how do you know which one to focus on? Well, we’ve got you covered. Here’s what you should know.
Halloween is a time for spooky fun, but it can also bring a scare to your wallet if you're not careful. From costumes to decorations and treats, the costs can add up quickly. Here’s how to manage your Halloween budget and keep your spending under control while still enjoying the festivities.
Now is the moment to turn your attention to your tax obligations. With less than 60 days remaining until the tax deadline now is a good time to prepare your documents and file.
Need a smart strategy to save on essential school supplies? Planning your dream vacation or gearing up for the holiday season? With a club account, you can save for essential school supplies, exciting vacations, and joyful holiday celebrations, making your financial goals more attainable and stress-free.
Here’s a big secret that could save you some money: auto financing is not just about the loan. When you control the financing, you control the deal! In this blog I’m going to share how you can walk into a car dealership with confidence and get the best deal without falling for any expensive tricks.
When you’re making a car-buying decision, several factors come into play: the price, trade value, warranty, after-market sales, fees, and financing. Many people don’t realize that the finance process, often an after-thought, actually determines the outcome of the entire deal. The finance process is typically where most dealers make their profit.
Research shows that consumers who enter into their auto-buying transaction with pre-arranged financing (ex: loan pre-approval) are happier than those who use dealer-controlled financing. When you have a keen understanding of the numbers throughout the process, you can solidify choices, prevent surprises, and avoid buyer’s remorse. Getting a loan pre-approval also helps you protect your identity, because you won’t need to share your personal financial information with the dealers and their partners.
Before you even start car shopping, there are some important numbers you need to know:
Once you know these numbers, MVCU’s Auto Advisor can help you identify appropriate vehicles and a loan term that meets your needs and budget.
Dealers often entice car-shoppers with hopes of a low rate, because what they really want is control of the loan. When the dealer controls the loan, they control the deal, and can sell more products by bumping up the payment a little or extending your loan term. You might hear them say “It’s only the price of a cup of coffee a day” …but $2 a day for 4 years is really a $3,000 decision! If they talk you into a longer loan term, you’ll pay even more in payments and interest. A win for them– not for you.
Let’s compare two scenarios for a typical $15,000 5-year loan:
The lesson here is that you’re far better off when YOU control the deal/loan.
Do you want to protect your car with an extended warranty and protect your loan with GAP insurance? After you’ve selected your car and negotiated your trade-in, you’ll be directed to the dealer’s finance office. The finance manager will present you with several options (that sound important and compelling) that are available for additional costs.
Some of the most expensive options include paint and fabric protection, tire and wheel protection, extended warranties, and GAP insurance.
While paint, fabric, tire and wheel protection are pretty straight-forward, GAP insurance and extended warranties may require more thought. If you choose to go it alone at the dealer, keep in mind that all these product prices are negotiable. Most finance managers are paid on the number of add-ons they sell as well as profit (so they’d rather sell these products at a discount than not sell them at all).
Considering GAP Insurance?
In my experience, GAP insurance costs about half as much from your credit union than from dealers, and it’s twice the product. Your MVCU service representative or Auto Advisor can explain the considerable differences between the two so you can make an accurate decision.
Considering an extended warranty?
Purchasing an extended warranty is a big decision with several factors: Who is underwriting the warranty? Is it the manufacturer, dealer, or the credit union? What’s the term of the warranty (years and/or miles)? Is there a deductible, and what’s covered? In my experience, extended warranties offered through the credit union are a much better buy. And MVCU’s Auto Advisor can help you determine if an extended warranty makes sense for you, while comparing the many options out there.
We get it– you’ve been bombarded with low rate and low payment car ads. But now you know there’s so much MORE to financing your next car than just the rate. The better prepared you are, the better you’ll do at the dealer. If you’re considering the purchase or lease of a new or used vehicle, talk with our Auto Advisor team BEFORE you go shopping. We are here to help ensure you get the best deal (with the least amount of stress), a loan that works for you, and have a pleasant experience! What’s better than that?
*These numbers are used as an example only and are hypothetical. Contact us directly for current rate information: visit mvcu.com or call 800-356-0067.
The insurance offered is not a deposit of the Credit Union, is not protected by NCUA or any other type of deposit insurance, is not an obligation of or guaranteed by the Credit Union and may be subject to risk.
Auto Advisor works with certain dealerships within their authorized network.