Maximize February Car Deals with a Pre-Approval - Money Tip Tuesday

Hunting for a new car doesn’t have to be a hassle. It should be fun and enjoyable. Fortunately, this time of year is a good time to find that perfect car and, with a little advanced planning, score a fantastic deal and a great rate. 

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• Learn more about Triangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

If you’re in the market for a car, you’ll have a lot of decisions to make. You’re probably hunting through car listings or scoping out nearby dealerships to pop by and maybe take a few cars for a test drive.  

But did you know that the process of buying a car starts before you even sit in that driver’s seat?  

If you’re ready to take advantage of the upcoming car deals this time of year, you’ll want to take certain steps to make sure you get a great price. 

 

First, establish your budget then go ahead and shop the prices. - Determine your budget by crunching numbers to find an affordable price. Use some online payment calculators to get an idea of how much your monthly payment will be.  With your ideal price in mind, start scoping around for good deals. 

This time of year, President’s Day is a spectacular deal day, particularly for car buying. It’s usually the first deal weekend of the year for most car sellers so they’re going to be extra eager to share attractive pricing on not only new models but also on popular cars you’ve been dreaming to own. 

Before you visit the dealer, scope out the car or cars you’re interested in a few weeks before President’s Day so you can keep an eye on pricing and take advantage of any deals that pop up over President’s Day weekend. Remember to keep that budget in mind.  

 

Second, make sure you know your credit score and check your report. Prepping your credit is an ideal way to set yourself up for getting a great price for the car you want. Your credit eligibility is an important factor to getting the most from these special deals because it largely determines how much you’ll get approved for and at how low a rate.  

Review your credit score and report. If you’re not happy with what you see, start taking steps to fix it. Make sure you make all your payments on time and keep any balances well under your credit limits. Doing this will help demonstrate that you’re responsible with your credit and will likely score you a lower rate.  

 

The final thing to getting the car you want at a great price is to get pre-approved BEFORE you head to the dealer.  

Whatever your reasons for buying a car, whether it’s your first ride, or you’re ready for an upgrade, if you’re planning to take out a loan for your vehicle, you’ll want to be prepared with the financing that is best for your budget and you do this by pre-qualifying for the loan. 

Prequalifying tells the dealer that you’re already set up with financing. It will help you shop with confidence because you already know the amount you’ve been approved for. That confidence also comes in handy when you negotiate pricing with the dealer, because your budget remains fixed due to the pre-approval.  

Pre-qualifying can also move the process along much faster because it cuts down on your time spent at the dealership. Once you decide on the vehicle you want, you simply return to the credit union and get your check to complete the purchase.  

If you’re wondering how to get pre-approved, it’s pretty straightforward.  

You can get started online or stop by your local branch. Once you’re in the system, a representative will get in touch with you to work through the next steps.  

Once your preapproval is established, it’s time to shop. When visiting the dealers, inform them that you already have a pre-approval with your credit union. When you’ve selected your vehicle, you’ll then bring the purchase and sales agreement from the dealership back to the credit union to finalize the process.  

If there are any other tips or topics you would like us to cover, let us know at tcupodcast@trianglecu.org. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!