☑ LMY VERIFIED
Featuring Jacob Johnson, BCU Member Service Specialist (0:43), on when leasing is no longer economical, what to consider apart from monthly payments, and determining the best type of car for you, David Sessions, BCU Lead Marketing Strategist (10:31), on doing your research, communicating with a car salesperson effectively, and car buying red flags, and Kim Chavez, BCU Financial Wellness & Coaching Senior Lead (19:30), on what type of payment plan is best for you, when is the ‘best’ time to refinance, and the importance of emergency savings for your vehicle.
Step One: Define your vehicle needs – now and into the future.
“The biggest thing to take into account is your needs right now and then also think into the future of ‘what could my needs be two or three years from now’...”, Jacob says.
This incldes questions like:
Don't overlook expenses beyond the monthly payment, like insurance and extended warranty costs. Understand what the warranty covers and what it does not. Your lifestyle should fit the warranty you choose.
Step Two: Establish research confidence for your vehicle purchase.
Kelley Blue Book, Edmunds, TrueCar, Carvana, and Vroom are just a few great online resources for curating research and comparing prices. This research will help you better understand your requirements and expectations before entering the dealership. Customer reviews are great, too. Consider reviewing answers to the questions listed in step one to help with your research.
“Be ready to negotiate”, David says. Go through scenarios with a friend and be ready to assert your research confidence in the dealership. “Ask for a detailed breakdown of the costs associated with the vehicle”, he goes on. Make note of financing terms and the like. Ask all the questions to be fully informed of financial commitments.
Step Three: Take your time.
“It’s not just about buying a car – it's about planning, owning your choices, and being realistic with where you’re at – take your time...”, Kim continues, “...and stay open to better options when it comes to refinancing”, she explains.
Don’t be afraid to walk away. If the situation is not going as planned, go home and think it over a bit more. Ultimately, this is your car, your money, your decision. The right time to buy is the time that you choose.
If you need support building a vehicle purchase plan, visit BCU.org/Coach to schedule time with a Certified Financial Coach, like Kim – here to help you build credit, crush debt, and grow your emergency savings fund.
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