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Deciding on  a Vehicle

1. You either want a vehicle, or need a vehicle. You must decide which BEFORE you go out and look. This will do away wit h a lot o f uncertainty.

2. Decide what “needs” have to be fulfilled with the vehicle you buy. For example: If you have children you will have to buy at least a 4 door car, crew cab pickup, or S.U.V. If you tow occasionally you may need to look for something with a towing package.

3. Before heading out to a car lot make sure you have the paperwork needed to verify employment and residence. For employment , your most recent pay stub will do. You will need to know how much money you gross (before Tax) to fill out the application properly. For residence history, a few pieces of mail will suffice.

4. Don’t forget the phone bill!!! Bring your current bill with you. Here’s an old quote  from the car business…”No phone? No loan.” Without away for the bank to contact you directly they will not give you a loan.

5. Bring a list with about 10 references. You may not use all 10 but it sure beat s scrambling for addresses and numbers in the sales of fice.

6. Give yourself some time. This is a big purchase, don't rush it. Give the salesman time to go over features and benefits wit h you. This, also give s you the chance to evaluate the vehicle in depth.

7. You can’t ask somebody “What are the payments?” and expect them to give you an amount… truthfully. Only way to figure out true numbers is to go in, run your credit, decide what term you want and wait for t he Finance Dept. to print them out. Only then, will you have some solid numbers. Your credit score determines the Interest Rate the bank gives you. A 1 point difference will lower or raise the payment s significantly.

These are a few general tips to keep in mind when purchasing an automobile. Next we’ll discuss the Pro’s and Con’s of buying New, Used, and Program.

Buying New:

PRO’s - It’s New. You’re the first one to lay hands on it, it’s your baby. It’s one of the best feelings to be the owner of a brand-spankin’ new car. If you’ve bought new before you know what I mean. Besides that, you’ll know every little thing that’s been done to it. Thus, you are confident in its ability to do what it has to. You’ll also have a full factory warranty.

Con’s - Price. Many people may not be financially ready to carry the cost of a new vehicle. First time buyers and people with less than perfect credit may find it a bit difficult to buy new without a co-signer .

Buying Program Vehicles:

PRO’s - The Price! You can get one just as new as the new ones but without the cost. It might have been used by the Dealership or loaned out to events as a demo so, It w ill have some miles on it. It will be a lot cheaper than a comparable new unit and still have the factory warranty. Just be sure to ask how many miles are left on the factory warranty. You can also purchase an aftermarket extended warranty from the dealership. Just ask for prices.

CONS - It’s not “new.” It may have small scratches or minor wear. No big deal considering the price difference. You may pay a slightly higher interest rate simply because banks give the best rates to new autos. Don’t forget you’re financing less, though.

Buying Used:

PRO’s - It's great for beginners and anyone with less than perfect credit. You will find a greater variety of autos than new or program. You can even purchase a warranty from the dealership. Any reputable dealership won’t hesitate to give you a vehicle history report. Depending on what you buy your payments will be a lot lower than a new one equipped the same.

CON’s - It will have miles along with some wear. It will need more inspection on your part to assure you it’s a smart buy. A purchased warranty will give you peace of mind.

Next , I’ll define some terms you may hear in a dealership.

• An “up”              That’s you , a customer
• “Bureau”            Your credit report
• “Gross pay”        Your income before t axes
• “P.O.I.”               Proof of income
• “P.O.R.”             Proof of residence
• “Stips”               Stipulations
• “Tags”                License plates
• “Term”                Length of payments
• “F&I”                  Finance and Insurance
• “G.M.”               General Manager
• “G.S.M.”            General Sales Manager