Speed in the automobile business is a very dangerous thing. When you rush, you don't think, and you don't compare. Be sure to stop any transaction at a dealership if you feel pressured or confused. Any dealership can have bad people – don't buy if you feel the least bit uncomfortable.
All dealerships want to sell you the first time you contact them. That's because they generally make more money if you don't take time to compare prices. A wise consumer never buys on the first visit. Take the time to shop everyone's prices.
Are safety and reliability important to you? How about mechanical reliability? Sellers can't tell you if the cars they sell are unsafe or mechanically unreliable. But our link to the Center for Auto Safety can help you learn that information. Also, learn which cars are the most fuel efficient by visiting our link to the U.S. Department of Energy's Fuel Economy Guide.
Know what the dealer paid for a vehicle by using La Cap's website Chrome Car Book feature; simply enter the make and model for a new or pre-owned vehicle and you will see the base MSRP (Manufacturer's Suggested Retail Price) and the dealer's invoice price. Use the dealer's invoice figure as a starting point for price negotiation.
Sellers generally want your deposit so you can't easily shop their price.
You've probably heard, "take it home on the spot," the first time you've seen the car. Don't fall for it! Many dealerships spot deliver a vehicle only to call the customer a week later to demand more money. Since the dealership has already sold your trade-in, you're forced to pay more. Dealers call these yo-yo sales. Don't ever let that term apply to your sale!
Call each dealership you are planning to shop and ask if you are required to sign a mandatory arbitration agreement. Virtually all consumer organizations and Consumer Reports magazine recommend that you not buy a vehicle from a dealership that requires you to sign a mandatory arbitration agreement. These agreements severely limit your legal rights, though they generally don't limit the dealer's rights to take action against you. If any dealership you contact requires a mandatory arbitration agreement, consider shopping elsewhere.
Did you know a credit union's 4% APR or 5% APR loan is virtually always cheaper than a dealership's 1% loan? Thousands cheaper! Why? Dealer financing promotions usually offer "0% financing or $2000 cash back." If you take the cash back and use it as a down payment at La Cap, our loan will virtually always beat the dealer's 0% because you're financing less money!
To say it plainly, when you finance $20,000.00 at 0% interest for 36 months with the dealer, you will pay back a total of $20,000.00. When you finance $18,000 at 3.99% APR for 36 months with La Cap, you will pay back a total of $19,130.00. Even if you financed for 4.15% APR for 48 months with La Cap, you will only pay back $19,570.00 and save $12 each month ($430.00 over the life of the loan).
There's an easy way to recognize the cheapest financing, too. Just put the contracts side-by-side! Insist that any dealership or web site give you a completely filled-out copy of the contract they want you to sign. Fax it to us at 800-297-2717 or 225-342-9135. We'll tell you if we can beat their financing or not. And if we can't, we'll send you back to them! What if a financing source won't give you a copy of their finance contract in advance? That probably means they're not the cheapest!
Thousands of dealers will sell you a vehicle for cost. But many of those sellers will still make thousands on you. Many give you less for your trade than it's worth, or charge you more for financing than you need to pay, or charge you outrageous prices for warranties and other products. The price of the car is only a small part of the profit to the dealership or Internet service.
Make buying a new vehicle, financing it, and selling your old vehicle three separate transactions. Even if you're trading in your old vehicle, learn what the dealer will give you for it before you settle on a purchase price for the new vehicle.
After the purchase price has been agreed upon, most buyers relax, incorrectly assuming negotiations are over. Listen carefully to avoid having add-ons you may not want added to the purchase price.
Extended Service Contracts are a profit center for dealerships and their pricing can vary greatly. Once you've determined the make and model of the vehicle you want, ask us for a price quote on an extended warranty – then you'll have something to compare. At La Cap, we know just how important it can be to have an extended warranty and make it our business to offer you the lowest possible price for the best option.
GAP Insurance (Guaranteed Auto Protection) is important coverage to have if you are financing most or all of the price of a vehcile. If your vehicle is totaled, GAP will cover any remaining loan balance after your insurance pays. La Cap's coverage will also provide you with $1,000 for down payment on a new vechlce and all at a low and practically unbeatable cost of $175.00!
Credit Life and Disability Insurance is a very good product that can protect you and your family's financial well-being; however, prices vary WIDELY. Ask us for a quote to see what a difference we can make.
We don't care which car you buy. We just want you to buy the best and safest one. We do, however, care about your financial well-being. That's because you are a member-owner and we are here to look out for your best interests.
Apply Now for your vehicle loan with La Cap.
For more helpful tips and information about car buying and financing, email us or call our Personal Assistance Line at 800-522-2748 or 225-342-5055.