How to Buy a Car: Step 4 - Buying Your Car

You’ve got your pre-approval — so now comes the exciting part: buying your car! But before U picture yourself cruising through Burbank in your new wheels, there’s a little more to the process than just picking out your dream ride. From savvy negotiation tips at the dealership to getting a clear understanding of rates and terms, UMe’s here to support U. Here’s what you need to know to make your purchase smooth, smart, and stress-free—so you can drive off with confidence and a great deal!

Rates and Terms

When buying a car, one of the biggest financial aspects to consider is the interest rate and the term length of your auto loan. Here’s a quick breakdown:

  • Interest Rates: UMe offers competitive rates for both new and used cars. New car rates start as low as 5.75% APR, while used cars may have a slightly higher rate depending on the vehicle’s age and mileage. Rates vary based on factors like credit score and vehicle’s loan value, so it’s important to shop around.
  • Loan Terms: The loan term is the amount of time you’ll have to pay off your car loan. UMe offers flexible financing terms up to 84 months (that’s 7 years, BTW), giving U plenty of options. Keep in mind, though, that longer terms often mean lower monthly payments but higher total interest over the life of the loan.

Remember, the sticker price isn’t the whole story—you’ll also need to budget for taxes, registration, and other fees. At UMe, we’re here to help make sure your car loan fits your financial goals and budget. Whether you’re buying new or used, we finance up to 125% of the vehicle’s value. Plus, we offer no payments for up to 90 days on new and used loans, giving you a little extra breathing room after you drive off the lot!

Negotiating at the Dealership

Once you’ve chosen the car, it’s time to negotiate! This part can be nerve-wracking, but remember: you have the power to get the best deal.

  • Do Your Research: Before heading to the dealership, research the market value of the car you’re interested in. Websites like Kelley Blue Book and Edmunds are great resources for checking average prices of the car you want, including any incentives or promotions. Knowing the fair market price gives you a solid foundation for negotiation. Stick to what you know — don’t let the dealership inflate numbers. 
  • Stay Focused on the Total Price, Not Monthly Payments: Avoid focusing solely on monthly payments; the dealer can manipulate those by extending your loan term, which may not be in your best interest. Dealers might try to steer the conversation toward monthly payments to make a deal sound better. While it’s important to know what your payments will be, focus on the total price of the car instead — this includes the cost of the vehicle, fees, and taxes. 
  • Take Advantage of Your Pre-Approval: With pre-approval from UMe in hand, you already know what you can afford. Use this as leverage during negotiations. It shows the dealer you’re serious and won’t be swayed by tricky financing offers.
  • Be Willing to Walk Away: This one’s big. Salespeople may try to pressure you into a deal, but if it doesn’t feel right, it’s OK to step back. Sometimes walking away is your best bargaining tool.

Don’t Forget: Extras Matter

Dealerships love to throw in extras like warranties, GAP insurance, or rust-proofing when you’re in the home stretch of your car purchase. While some of these add-ons can be useful, many are often marked up more than you’d expect. In true California car culture spirit, it’s important to evaluate what’s really necessary for your ride. Don’t let the dealership rev the price too high on extras you may not need. At UMe, we’re here to help you cruise through the fine print with confidence and clarity—without the upsell!

Private Sellers: Keep It Cool

If you’re buying from a private seller, stay savvy, SoCal style! Always take the car for a spin and, if possible, have a trusted mechanic give it a once-over. Ask for those maintenance records, too—this helps you avoid surprises down the road. And don’t worry, UMe has you covered with financing, even if you’re not buying from a dealership. Whether you’re cruising the streets of Burbank or beyond, we’re here to make your car-buying experience as smooth as the tunes on K-Earth 101!

A Word on GAP Insurance

Don’t forget about Guaranteed Asset Protection (GAP) insurance. This optional coverage is great for protecting yourself if your car is totaled or stolen, especially since new cars depreciate quickly. UMe offers GAP insurance to help you cover the difference between your insurance payout and the amount left on your loan.

You’ll also want to consider Mechanical Repair Coverage (MRC), which protects against out-of-pocket expenses when your car’s manufacturer warranty expires. These are solid options you should look at closely, especially if you plan to drive your car for a while.

UMe Pro Tip: We offer these insurance products at a lessor cost than any dealership!

Closing the Deal

Once you’ve agreed on a price, it’s time to finalize the paperwork. Make sure everything lines up with what was discussed, including the price, loan terms, and interest rate. Double-check the figures before you sign anything! Don’t rush through this part — read everything and make sure the terms match what you agreed on. If anything seems off, speak up!

At UMe, the process is straightforward. If you’re buying through one of our trusted dealers like Autoland or CarMax, things can go even smoother. You can also take advantage of UMe’s perks, like up to 90 days of no payments on new and used car loans, giving you a financial cushion.

Once everything is signed and ink is dry, congrats! You’re the proud owner of a new (or new-to-U) ride! Now it’s all about enjoying that California sunshine from behind the wheel. And remember, UMe is always in your corner, offering helpful tools, resources, and support for anything that comes your way. Whether it’s your first road trip or routine maintenance, we’ve got what you need to keep cruising smoothly. So go ahead, hit the road knowing you’re backed by your favorite Burbank credit union!

By taking the time to research, negotiate wisely, and explore your financing options, you’ll drive away knowing you made a great deal — one that works for your budget and needs.