Create a budget. According to most financial planners, a monthly auto payment should be no more than 20% of your monthly gross income. You can apply online or talk to a loan officer to determine a payment that will fit your budget, and pre-approvals are always FREE.

Through the CUDL Auto Buying Program or an auto broker, you can work with local auto professionals to receive pricing and availability on new vehicles before visiting the dealership (either online or by phone).

• Preferred Dealerships
• Auto Broker
  

Negotiate up from invoice, not down from Manufacturer's Suggested Retail Price (MSRP) or "sticker" price on a new vehicle. On a used vehicle, negotiate up from wholesale value, not down from retail value.

• Click Here To Research Vehicle Pricing
  
  

Don't ever buy a car without a test drive - even on a new vehicle! Once you've negotiated the best price, set an appointment with the contact at the dealership (see tip #5). On a used vehicle, we highly recommend that you request a conditioning report and have your own mechanic check out the vehicle. Some dealers now call these conditioning reports "certification." A certified used vehicle is usually a little more expensive, but can include a warranty and special financing terms.

• Carfax (Vehicle History Report)
  
  

Once you reach the finance & Insurance (F&I) office, the dealer will offer you various extras for your vehicle. Of the multitude offered, we suggest considering the following:

• Guaranteed Auto Protection (GAP): Purchasing GAP is crucial if you owed more on your last vehicle than it was worth and agreed to have the dealer add it to your loan. GAP is also a wise choice if you drive a lot of miles each year -- even if you put a down payment of 20%. The value of your new vehicle at the time of delivery decreases tremendously the minute you drive off the lot (and even more with a used vehicle). GAP protects you from the difference between what your insurance company says your vehicle is worth and what you actually owe the lender. Read the fine print -- not all GAP coverage is the same.
  
• Service Contract/MBI: If you've financed or leased for a short term (36 months) you probably don't need a service contract or Mechanical Breakdown Insurance (MBI). If you are planning to keep the vehicle for 5 years, consider this purchase. Make sure the service contract or MBI covers wear and tear and mechanical breakdown. Also, know the difference between a service contract and MBI. With MBI, a part usually has to break on the car to warrant repair, and often you must pay the bill with the repair shop and submit a claim on your own. Service contracts are accepted almost everywhere and cost more, but usually provide more coverage. The more dependable car you choose, the cheaper the warranty. don't be fooled by the manufacturers warranties that give you 100,000 miles of protection, because they usually do not cover everything!
  
• Credit Insurance: While life and disability can be valuable financial resource, many consumers over-pay for this protection. This same insurance can cost 30% less through a credit union versus an auto dealership.