Woods Credit Union

A Money-Making Idea: Sell Your Old Car Yourself

by Remar Sutton

How hard do you work to take home a thousand dollars? Well, that's how much you might throw away if you trade in your old car rather than sell it yourself. Follow these tips and if you're lucky, you'll keep that thousand, rather than hand it to the dealership.

1. Clean your car top to bottom. Fix minor things like blown fuses.

2. Find out its "wholesale" value--that's all a dealership will give you for it. Just take your car to a few used-car operations and ask what they would pay to buy your car outright. The highest figure is its true wholesale value. You also can get a fair idea from classified-ad asking prices for cars like yours, and on the Internet at sites like www.edmunds.com.

3. Set an "asking price" that's high enough to allow you to dicker: Add $2,000 to the wholesale price.

4. If you owe money on your car, call your lender for instructions about paying it off before you advertise it for sale.

5. Run a short ad in your local daily paper and in any "traders." Study other ads for tips on wording.

6. Use common sense with any stranger who wants to drive your car before making an offer: Check the person's driver's license; write down the tag number of the person's car.

7. Become a salesperson: Talk up your car's good points. Has it been dependable? Have you kept careful maintenance records?

8. Don't talk trade or finance. And don't come down off your asking price too quickly. If you've marked up your car $2,000, come down in increments of $50 or $75. And remember: Any amount you receive above your car's "wholesale" value is extra profit to you.

9. Don't accept personal checks. Insist upon a cashier's check or cash.

Selling a car yourself rather than trading it in takes work and patience. And your chances of success aren't 100%. But tens of thousands of people just as inexperienced as you do it every week, and do it successfully. And wouldn't that extra thousand or so come in handy?

Editor's note: Remar Sutton's car-buying tips have been featured on "Good Morning America," "Today," "20/20," "Nightline," and in magazines such as People, Newsweek, and Credit Union Magazine. He's president of the national Consumer Task Force for Automotive Issues. He writes this column exclusively for credit union members.

Auto Rebates: Who Gets the Money?

Rev. 8/02

by Remar Sutton

Cheap interest rates! Thousands of dollars back! Manufacturers and dealers are pushing these enticing incentives, and, if you're a savvy incentive shopper, you may save a bundle. But be warned: Do it wrong, and you'll throw away those savings and even pay more.

Here's what's really happening when it comes to "cash back" promotions, the most popular incentive.

Rebates: Who gets the money? Rebates sound so straightforward: Buy this car, for instance, and get $2,000 back. In virtually all cases, the advertisements you see for rebates are real: The manufacturer, not the dealer, promises to send you a check after you've bought or leased a particular vehicle. The money, in theory, has nothing to do with the price you may have negotiated on a vehicle.

What should happen: The rebate money reduces what you're actually paying for the vehicle. Let's say you've agreed to pay $20,000 for a car. The manufacturer agrees to send a check directly to your home for $2,000 as a thank you. When the check comes, your total cost for your new wheels is $18,000.

What does happen many times: The rebate money becomes extra profit for the dealer. For instance, you agree to pay $20,000; they agree to give you "credit" for the $2,000 rebate. You should owe them $18,000, but they draw up paperwork showing you still owe them $20,000. You just lost $2,000. And you generally won't see this trick occur because the sleight-of-hand is hidden in paperwork.

How to prevent theft of your rebate money: Don't make that gift from the manufacturer a part of your negotiations with the dealership. Negotiate your price on the new vehicle as if there is no rebate. And then have the rebate check sent directly to you at home. Never allow the dealership to "apply" it to the amount you owe them.

Will this work? It will work every time! And, believe me, you can be sure that $2,000 savings is real when you receive it in the mail.

Editor's note: Remar Sutton's car-buying tips have been featured on "Good Morning America," "Today," "20/20," "Nightline," and in magazines such as People, Newsweek, and Credit Union Magazine. He's president of the national Consumer Task Force for Automotive Issues. He writes this column exclusively for credit union members.

Auto Safety Devices That Could Save Your Life

Although vehicle safety has improved in the past decade, 43,000 people still die every year on U.S. highways. Which technology might save your life?

Side air bags--Research shows that protection for the head reduces death rates 45% for drivers whose side of the car is hit. Traditional front air bags don’t help much in side-impact accidents, which are responsible for 9,000 deaths annually. This optional equipment has a list price of around $345 on some models. These bags save lives and are considered well worth the money.

Electronic stability control systems--These systems stop skids with swift, automatic, computer-guided braking of selected wheels and help avoid rollover accidents. The cost is high--around $750 in some models--but it could prevent tip-overs and save lives.

Tire pressure monitors--If tire pressure is at 27 pounds per square inch (PSI) when the manufacturer calls for 32, this greatly increases the danger of tire failure, especially during long drives at high speed. If you don’t check tire pressure regularly, consider this equipment that warns if a tire falls below safe pressure.

Antiwhiplash headrests--New, dynamic head restraint systems can sense a crash impact and adjust the head restraint or seat back to reduce the possibility of whiplash. On models without this technology, don’t leave the restraint in the “down” position; adjust it so its top is just below the top of your head.

What Does Vehicle Depreciation Cost?

Depreciation is the invisible cost of vehicle ownership. In the first year you own it, your new vehicle may lose 20% of its original value due to depreciation, according to IntelliChoice, based in Campbell, Calif. By the end of the fifth year, your vehicle's value drops by an average of 35%.

But it's not only vehicle buyers who take a hit. Depreciation affects the cost of leasing as well, because leasing payments are based in part on what a vehicle will be worth at lease-end. The more a vehicle depreciates, the less it will be worth when your lease is over, and the higher your monthly leasing payments will be.

You can't stop depreciation. But you can lessen the impact depreciation will have on your wallet. Here are a few points to consider:

Some makes and models depreciate faster than others. Accurately predicting depreciation is difficult because so much depends on a vehicle's continuing popular appeal. The Credit Union National Association Web site has a depreciation calculator. Go to www.cuna.org and under consumer info, hit "calculators."

The pace of depreciation levels off after five years. Hanging on to a vehicle for at least that long minimizes the impact of depreciation on the overall cost of ownership.

It's smart to pick options that will appeal to the next buyer: air conditioning, automatic transmissions, sunroofs, and convertible tops. Lesser known models, "luxury" or "limited edition" models, and vehicles with odd colors or features tend to depreciate faster.