Secrets From The Auto Financing Office

Secrets From The Auto Financing Office


Bellco Credit Union Bank Smarter. Live Smarter. Car Smarts from our partner Automotive Avenues Hi I’m Jacob Rotter, Automotive Avenues’ Finance Director. I have been in the car business 15 years. Understand what you are paying for. As far as purchasing a vehicle, I believe the first thing you should start out with is a pre-approval. In that essence at least you know the interest rate
you will be paying for that vehicle. Secondly I would make sure when you have negotiated the price that that is a final price pre-tax as tax
is based upon where you live. Next, once you get into the finance office office you need to verify the price you are paying on top of that look at any items accessories
for example extended warranty contracts and gap coverage. Gap usually makes sense unless you are putting forty
to fifty to sixty plus percent down. What is GAP insurance? If you pay full MSRP for a new vehicle
and do not put any money down and finance all of your taxes as cars
do depreciate with time and wear, if you were to get in to an accident and total that vehicle, insurance is responsible for market value for that vehicle which does not mean that is the amount that you owe so GAP therefore would pay the difference between that number For example as well, if you were to
put 50% down on that transaction, it probably wouldn’t make good financial sense for you to
cover that as your down payment already has. And make sure that you’re protecting the investment and the
time that you’re going to keep that vehicle. For example, if you are leasing a car for two years there’s probably no need to put a 7 year warranty on that vehicle. Little things like that can end up saving the consumer quite a bit
of time and/or money in their purchase of a new automobile. Bellco Credit Union. 75 years of Banking Smarter. Bank Smarter. Live Smarter. Bellco.org

About the Author: Michael Flood

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