Command Financial Specialist Training

1
Command Financial Specialist Training

• Car Buying Strategies

2
Topics

• The Three Deals of Car Buying
• The Purchase
• The Financing
• The Trade-In
• Legal Rights

21.4
3
Deal 1 The Purchase
4
How much can you afford?

• Total price
• Down payment
• Monthly payment

5
Prepare a Spending Plan
6
Debt-to-Income Ratio
Percent Status
Less than 15 Some additional creditmay be used with caution.
15-20 Fully extended.
21-30 Overextended.
More than 30 Seriously overextended. Seek help!
7
Determining Your Car Payment
Your Car Payment Should Be No More Than 25of
Net Income Total 15 to Payment 10 to
M-I-O-T Maintenance Insurance Operating
Expenses Taxes
21.6
8
What Type of Car do you Want?

• Few mechanical problems
• High depreciation
• Better warranties

• More mechanical problems
• Less depreciation
• Less warranty coverage

9
Performance

• Consumer Reports Annual Auto Issue (April)
• Internet Websites (See Sources of Help)

10
What about Insurance?

Get insurance quotes Figure into spending
plan Raise deductible to lower premium Check your
credit report Avoid lapses in coverage Be a safe
driver Can cost more than car payment!

11
Where will you buy?
12
Which Dealership?
13
Dealer vs. Private

• Repair Plans
• Cost More
• Some Consumer Protection

• No Repair Plans
• Cost Less
• Little Consumer Protection

14
More Buying Options

• DefenseCredit Unions
• NFCU
• USAA
• NCOA
• Auto-by-Tel
• Internet Resources

15
What is a Fair Price?
What about Base price, invoice, sticker price,
monroney,options, destination charge?

• Public Library
• NADA Book
• Kelley Bluebook
• Intellichoice
• Consumer Reports
• Edmunds
• Internet

16
Leasing
21.7
17
Negotiating
18
Tricks of the Trade
21.8
19
Deal 2 The Financing
20
Where to Finance
21
Questions to Ask Car Dealers
Special Dealer PromotionsandLow-Interest Dealer
Financing
21.9
22
The Cost of Money Finance Charges
23
The Purchase Contract
21.10
24
Contracts
25
Contracts
26
Common Dealership Financing Pitfalls
27
Common Dealership Financing Pitfalls
28
Deal 3 The Trade-in
29
Legal Rights

• State Lemon Law
• Consumer Leasing Act
• Odometer Reading
• Used Car Buyers Guide As Is vs.
  Implied/Expressed Warranty
• Magnuson-Moss Warranty Act
• State Auto Repair Facilities Act

30
Complaint Resolution
31
Sources of Help