Why Flagstar Bank when buying a new car?

Why Flagstar Bank when buying a new car?

Table of Contents Section I: Page 2 Why Flagstar Bank When Buying a New Car?

Section II: Page 8 How Do I Find the Perfect Car?

Section III: Page 12 If I’m Ready to Buy, What Do I Do Next?

Section I

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Section I

Why Flagstar Bank when buying a new car?

Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.

Section I

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We can help you plan ahead. Purchasing a car is widely regarded as one of the most important financial decisions a person can make, along with purchasing a house and getting married. With so many factors to consider, like safety ratings, gas mileage and more, it can be hard to tune out the noise and focus on advice relevant to your specific situation. Whether you’re looking to buy a new car, replace your current one or you’re just curious about the car buying process, look no further than your friends at Flagstar Bank. Our mission is to help you achieve your dreams by ensuring you meet your financial goals. Our expertise can help prepare you for the road ahead.

flagstar.com/locations


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When is the right time to buy? Truthfully, the right time to buy a new car is after you’ve done all of your research and weighed every possible option against your wants and needs. However, seasonality—even the day of the week—affects what you might pay for your vehicle.

Here are some of the best times to buy : Mondays

Most car purchases tend to take place later in the week, so heading to the lot on Monday will give you the dealer’s full attention, leaving you more time to ask questions and negotiate.

May

Memorial Day weekend has proven to be a smart time to buy over the years, due in large part to new models arriving on the lot while dealers are trying to get rid of the previous year’s inventory.

October - December

The last three months of the year are for the more decisive buyer: Each month has shown to offer its own discount. October is usually for full-size pickup trucks. November is the best time to buy a sedan or compact car. December is typically when SUVs are at their most discounted prices.

The end of the month

Car salesmen have monthly quotas set by the dealership, and they become more and more willing to make deals as the month comes to a close.


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How can I save up for a new car? Calculate your desired car payment. Be realistic with how much you can afford to pay per month. Calculate your down payment. This may depend on the car you’re intending to purchase and where you purchase, but it helps to have a general idea of what you’ll be able to put down. Make savings mandatory, but don’t punish yourself. Saving for your new car should be a priority, but there will undoubtedly be other expenses that come up. Saving a certain amount each month will put you that much closer to getting the car of your dreams.

Buying vs. leasing Because everyone’s situation is different, there really is no clear-cut answer on whether buying or leasing a new vehicle is right way for you. From a purely financial perspective, buying may seem like the smarter way to go, especially if you can afford the monthly payments. However, leasing allows you to have a nicer car for less money per month. Flagstar Bank experts can help you decide what’s best for your personal situation.

New vs. used When it comes to deciding whether to buy a new or used car, it is important to note that each comes with its own advantages and disadvantages. While new cars have a higher depreciation value, they also have the latest technology and features. Buying a used car may offer a lower initial price, but requires more attention to detail during the purchasing process. Weigh your decision carefully based on your needs and financial ability. Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.

Section II

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What are the benefits of a pre-approved auto loan? A set-in-stone budget When shopping around for a new car, having a set amount in mind will help you make the decision that’s right for you. A better interest rate In some instances, an interest rate from your car dealer might make purchasing more convenient, but you run the risk of that rate being marked up by 1-2%. Easier negotiations Staying firm with your set amount will also help you when negotiating with a dealer, nearly eliminating the chance of overpaying. https://www.nerdwallet.com/blog/loans/advantages-of-getting-preapproved-for-a-car-loan/


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What other factors should I account for? Sales tax Buying a car is a big purchase, and sales tax can easily take you by surprise. For instance, 6% sales tax on a $20,000 vehicle is $1,200. That’s no small amount, so be sure to factor in when shopping around. Car insurance The type of vehicle you purchase, as well as your driving history, play a large part in your insurance rate. Make sure you consider the impact to the cost of your insurance before you make your new purchase. Extended warranties A popular argument against warranties is that paying for one will far exceed the amount you would pay for repairs without one. That being said, warranties are extremely helpful—especially for first-time car buyers—and do provide peace of mind.


Section II

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Section II

How do I find the perfect car?


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We’re here to point you in the right direction. The most important part of the car buying process is the research. Be as thorough and exhaustive as possible. It is your purchase, and it is a big one, so take your time and weigh every option. We’re always here to help if you have any questions. flagstar.com/locations Online resources Online car shopping has experienced somewhat of a boom in popularity recently. Major websites like Consumer Reports, TrueCar and AutoTrader have proven invaluable in the car buying process. Shoppers can view consumer ratings, read reviews and more, which allows for a more informed decision when the time comes. Consumer Reports Kelley Blue Book TrueCar AutoTrader Auto Tempest Cars.com


Section II

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We’re here to point you in the right direction. (cont’d) Safety ratings It should go without saying that safety ratings are incredibly important, but that cannot be overstated. Luckily, car manufacturers are always quick to tout their safety features. Before you’ve found that perfect vehicle, the safety rating should be the very first thing to check. The main criteria for a vehicle’s safety rating include: • Structural Soundness • Active Stability Control • Anti-lock Braking Systems • Airbags • Seatbelts For more information, visit www.safercar.gov. Resale value While doing your research, one thing to consider is resale value. Choosing a vehicle with high resale value is very important. It not only to keeps costs down, but combats depreciation. There are also a number of value resources to help you determine resale value before you even purchase your new car. For instance, Kelley Blue Book makes projections for resale value taking into account current vehicle data, sales data, market conditions per vehicle, competition within vehicle segments and expectations of the future economy. For more information, visit www.kbb.com.


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We’re here to point you in the right direction. (cont’d) Family friendly Are you married or single? Do you have kids or are you planning on having them? Questions like these need to be asked when considering a new car. Sure, right now you might want something fast with only two doors, but that won’t be ideal when starting a family. When you’re doing your research, be sure to think about how long you plan on having your new vehicle, as well as what life stages you’ll be going through during that time. There’s nothing wrong with buying for the short-term, but it’s always good to consider every possibility.


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Section III

If I’m ready to buy, what do I do next?


Section III

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Here are some ways to get the most for your money. The moment has arrived. You’ve chosen not only the right car, but the perfect one. It has everything you want and more. Now you just have to pay for it. Your friends at Flagstar Bank can help you throughout the buying process and answer any questions you may have. flagstar.com/locations Buying from a dealer In most cases, after all your research you’ll want to go to a dealership, check out the car and close the deal. This is where you need to be extra careful and watch out for hidden or additional fees that will add to an agreed-upon price.

Here are as few dos and don’ts : • negotiate with multiple dealers through email before you set foot on the lot. • inspect and test drive the car you intend to buy. • walk out if the salesperson tries to raise an agreed-upon price. • watch the down payment. • call your insurance agent and get it insured before you drive it off the lot. • let the dealer focus on monthly payments, always focus on the price of the car. • negotiate more than one thing at a time. • buy unecessary extras or features. • drive the car home before the financial paperwork is complete.


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Here are some ways to get the most for your money. (cont’d) Buying from a warehouse club Companies like Sam’s Club and Costco offer deep discounts when it comes to new and used cars. Auto buying programs from warehouse clubs will typically let you see what others have paid for the vehicle you’re looking for, while showing you what local dealers are willing to sell for. Members also receive additional discounts. Costco Sam’s Club Buying a used car online While you cannot complete a car-buying transaction online, there are many different retailers that allow you to start the process. Used cars are widely available from a variety of online retailers, such as AutoTrader, CarMax and TrueCar. Beyond the dealership Today’s startup culture has made its way to the auto industry in the form of companies like Carvana, Vroom and NowCar. The business model for these “dealerships” is simple: buy a new or used car online and have it delivered to your door. Millenials are flocking to these services because there is no dealer involved, and they typically only sell cars that have never been in an accident. A major drawback, however, is that these services are not widely available yet. Carvana Vroom NowCar Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change without notice. Underwriting terms and conditions apply.

Section III

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Here are some ways to get the most for your money. (cont’d) Selling vs. trade-in Like buying a car, selling one has a process all its own. Trading in your car to a dealership is the easiest way to get it off your hands. Privately selling your car will net you more money in the end, but getting to that point isn’t always cut and dry. You will need to advertise, negotiate and even offer test drives—all on your own. When selling your car, the best approach is to put yourself in the mindset of someone looking to buy, and then try to meet their needs. Here are a few common pit-falls to avoid:

• Poor vehicle condition • Unflattering or incomplete photographs • Inadequate vehicle description • Non-existent sales pitch • Missing paperwork


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Conclusion

Buying a new car can be an arduous process, but you don’t have to do it alone. Feel free to stop by your local Flagstar Bank if you have any questions. Good luck! flagstar.com/locations


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