Sun. Jun 20th, 2021

Knowledge is power!

With the power of the internet, ignorance is a choice. Think about it for a second. We can literally learn almost anything about the car-buying process within a few keystrokes. That is why knowing how to purchase a vehicle and feeling confident with the deal you receive should be a breeze!

But in case you haven’t gotten around to studying the process, we have you covered.

When starting the car-buying process you should arm yourself with as much research on the vehicle you are interested in before you head to the dealership. With websites such as CarGurus, Autotrader, and Carfax, it’s almost impossible not to work the market in your favor.

Did you know that almost every major automotive dealer in New York State provides a signed Carfax to every customer at the point of sale and delivery?

The Carfax provides specifics reports about every vehicle to include service repairs and insurance claims. If that doesn’t provide a higher level of transparency, then I don’t know what does! This goes for your trade as well.

When you bring your trade in, dealers aren’t just looking at your shiny fenders. They want to see your vehicle’s service history. So that fender bender that you ended up having fixed may still come back to haunt you.

When purchasing the second biggest investment in most of our lives, there are a few things to consider rather financing or leasing. Banks first look at buying power, such as credit. They also consider cash down,length of employment, negative equity, and the deal’s structure. A solid combination of all these variables play a huge role in determining your interest rate.

You must also always keep in mind that the cheaper car, doesn’t mean a better car. Loan to value or what we call “LTV” can also play a huge role in the approval process. Financial institutions gauge how much money they’ll lend based on the vehicle’s book value versus the overall dollars being asked for. The lower the LTV, the better the approval chances. 

Did you know that over 67% of the time, financial institutions require stipulations before delivery or funding of a legal binding contract? Stipulations can vary from buyer to buyer and is primarily credit driven. This is often the main reason why the buying process is delayed.

To help you out, here is a list of documents to bring with you when buying your next vehicle:

  • Proof of income dated within 30 days. Three month’s bank statements if you are self- employed or your 1099 form. Also consider bringing last year’s tax statement if you’ve been in business for over two years. Most lenders will accept SSI, pension and annuity
  • Proof of address (utility bill, bank statement, lease agreement within the current year) within 30 days
  • Proof of phone within 30 days. This stipulation is usually required if you frequently change your phone number and all lenders will call to confirm, so be sure to pick up your phone for the unknown 1-800 number
  • Proof of home ownership. Be careful when informing lenders that you own your property because this can changes your approval drastically. So, if you live with mom-dukes just say “Living with relative.” Lol.

This is just a small list of what lenders look for when completing your contract and reporting it to the creditors.

So, when you’re on your way to the dealership to negotiate for the best possible deal, ask yourself, “Does my credit qualify? Do I have stipulations? Is my trade worthy enough? Can I afford my dream vehicle just yet?” These are just a few questions to ask yourself when preparing to purchase a vehicle.

One last thing to keep in mind before you receive your keys; your salesperson will make sure to put icing on the cake by taking a nice photo of you next to your shiny new vehicle. This is done to look good for their business’s Facebook page and to encourage repeat and referral business. I strongly recommend, for the sake of your reputation, that you’re having a pretty good hair day.

If you’re looking for additional details or still have questions, feel free to reach out to us at We will answer all inquiries upon receipt.

Good luck and thanks for reading.

4 thoughts on “Simplifying the Car Buying Process (Tips)”
  1. Very informative read. I now feel confident entering the next car dealership. Thank you.

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