Auto-Buying Tips Know the Facts about Zero-Interest Loans! What is GAP?
Serving Members Since 1931

When creating a budget most financial planners say that your monthly auto payment should be no more than 20% of your gross monthly income. Ask a GEFCU loan officer or use our online calculator (click here) to figure a monthly payment that meets your income.

Don’t let your purchase be an emotional decision--research online before visiting the dealership. Our larger GEFCU branches also have some helpful auto books to compare prices on new and used autos.

Knowing the invoice price will help you to negotiate a better deal. This is the price the dealer paid for the vehicle not including the cost of advertising, destination charges, or special regional pricing. It is important to know the wholesale and retail prices on used vehicles. These prices can be found using the NADA Guides  and Black Bookeither online or at your nearest GEFCU location.

Figure out the cost for options and subtract any rebates or incentives currently offered for a new vehicle. Also consider whether you will be paying cash or financing, and if you have a trade-in, find out how much it is worth. Research trade-in values online and make sure to accurately factor in the condition of your vehicle.

Negotiate up from invoice, not down from Manufacturer’s Suggested Retail Price (MSRP) or "sticker" price on a new vehicle. On a used vehicle, negotiate up from wholesale value, not down from retail value.

Don’t be fooled by zero percent or low interest rate financing. We’ve done the math for you! Click here for more information and comparison tools.

Don’t ever buy a car without taking a test drive--even a new vehicle! Once you’ve negotiated the best price, set an appointment with the contact at the dealership . On a used vehicle, we highly recommend that you request a conditioning report and have your own mechanic check out the vehicle. Some dealers now call these conditioning reports "certification". A certified used vehicle is usually more expensive, but can include a warranty and special financing terms.

Don’t forget to use the information you researched on your trade to get the most for it. Have the dealer show you the price for your trade separate from the deal— most dealers disguise the amount offered on your trade into the final figure of your monthly payment. One way to ensure this is to offer your trade at the last minute. It is important that you get the best overall price for the car, a reasonable monthly payment, and a good deal on your trade.

Guaranteed Auto Protection (GAP): Buying GAP is important if you owed more on your last vehicle than it was worth and have agreed to have the dealer add it to your loan. GAP is also a good decision if you drive a lot of miles each year, even if you have put more than 20% down. The value of your new vehicle at delivery decreases tremendously the minute you drive off the lot and even more so with a used vehicle. GAP protects you from the difference between what the insurance says your vehicle is worth and what you owe the lender. Read the fine print--not all GAP coverage is the same.

Call GEFCU at any of our locations for pre-approvals or with any questions.

Note: Rates are Subject to Change without Notice

Send mail to mail@gefcu-austin.org with questions or comments about this web site.
Copyright 2004 GEFCU
Last modified 02/29/2008