A large percentage of the vehicles we finance are used cars, and a good share of those are purchased from private individuals. To help you make this very common way to buy a car a satisfying transaction, here are some tips based on the successful experience of our members.

Selecting The Car

Do your homework before you decide to make a purchase. Knowing the repair records and market prices of specific types of cars you have in mind can help keep your search realistic.

Also, it pays to get a mechanical evaluation of a used car before you make your decision to buy it. Most private sellers will allow serious prospective buyers to take the car to an independent mechanic. Investing in a thorough examination may save you thousands of dollars down the road.

Negotiating The Deal

"Dealing with cash" has the same advantage in any car purchase negotiation, so having your financing pre-approved will strengthen your bargaining position.

Setting the price is always a challenge in a private sale. A useful rule of thumb is to use the midpoint between the "trade in" and the "retail" values as listed for the car in the NADA "Blue Book" of used car prices. These books usually are available at your local library, and always are available at your nearest Credit Union office. If it isn't convenient to go to a Credit Union office, call and speak with a FAIRWINDS Loan Officer who will be glad to look up prices for you.

The Blue Book price reflects "average" cars. Adjust your negotiations up or down based on the condition of the car on which you are dealing. The independent mechanic's report mentioned earlier could help establish the car's condition relative to "average."

Financing The Car

Once you have found the car and settled on a deal, be sure to ascertain whether there is an outstanding loan on the car. If there are no outstanding loans, the seller will have a copy of the car's title. The title can be signed over to you at the time of loan closing.

If there is a current loan, have the owner provide you with the name of the lender and the loan number. Your lender - hopefully your Credit Union - will need this information so that part of your loan proceeds can be paid directly to the owner's lender to satisfy the current loan and therefore ensure that a clear title passes to you.

When shopping for financing, either the pre-approved route or after you have found the car, be sure to look for a lender that charges no more for a used car loan than a new car loan. One place you can be assured of this kind of fair pricing is FAIRWINDS Credit Union. That's because we lend money to you based on your credit worthiness and good name, not on the age of the car that you drive.

We understand how important a car purchase transaction is to you. We're here to help with buying tips, facts and figures to boost your negotiating position, and financing to make your car affordable. If you have any questions, call our Loan Line at (407) 277-5045 or toll-free at (800) 443-6887.

Shop your Credit Union before deciding on car financing

• Fixed member rates that usually are below those available at other lending institutions.
• Loans usually will be approved in less than 24 hours.
• Up to 100% financing for qualified members.
• Payment plans that are affordable. Our loan officers will work with you to develop a payment plan that fits your budget.
• Payment options that include payroll deduction or automatic transfers from your savings or checking account.
• Simple interest calculated on the outstanding balance only. Want to gauge what your new payment might be? Try one of our online payment calculators to find out.
• No application fee or prepayment penalty.
• Apply online or by phone. Call Loan Line at (407) 277-5045 or toll-free at (800) 443-6887.