Let’s face it – buying a car can be stressful and time-consuming. You may think the work is done once you’ve found your vehicle and negotiated a good price but not so fast. You’ll need to visit the F&I office (finance and insurance) next and that’s where things get more difficult!

One of the reasons we recommend getting pre-approved BEFORE visiting a dealership is that you’ll save a little time not having to talk about the rate, payment, and terms. But not so fast, they will push various add-ons such as rust protection, extended warranties, VIN etching, and much more. Buyer Beware – F&I is where the dealership can make money on these overpriced extras!

Hidden Fees to Watch

Sometimes the F&I salesperson will tell you that you have to buy it if it already comes on the vehicle you selected – but that may not be true.

1. Market Adjustment – This is not a charge from the manufacturer, but it’s added by the dealership for high-demand vehicles. Negotiate it off or find another dealership.
2. Nitrogen-Filled Tires – It’s supposed to make tires less susceptible to pressure changes that come with temperature fluctuations. This is not needed as air is mostly nitrogen anyway.
3. Window Tint – Typically the back windows come tinted but if you want to get the front windows tinted, shop for that aftermarket because the price at the dealership is inflated.
4. Theft protection or VIN etching – The idea is to deter theft and help in recovering a vehicle if stolen. But all new cars have the VIN stamped in multiple places so it’s unnecessary and not a deterrent.
5. Pinstriping – If you specifically want it and asked for it, pay for it; however, don’t pay for it if you didn’t request it.

Mandatory Dealership Fees

These are fees that you will find on any vehicle you purchase from a dealership and cannot be negotiated.

1. Tax, Title, and Registration Fee
2. Dealer processing fee
3. Destination & Delivery fee – this is from the manufacturer

According to the FTC, one dealership in Texas added fees to the sales contracts of up to 75% of its buyers.

Member Testimonial

Here’s an actual member* story that illustrates the importance of financing your vehicle with Members Trust.

A long-time member, Mr. Fall Season, knew to get pre-approved at Members Trust before visiting a car dealership. Even though he had his pre-approval, when he visited the dealership over the weekend, they convinced him that financing at the dealership would be a better deal because he’d be eligible for certain dealer rebates.

Mr. Season decided to finance through the dealership so he could get his $2,500 dealer rebate; however, the dealership proceeded to add several unwanted ancillary products, which caused him to be upside down on his financing by more than $8,000.

Fortunately, Mr. Season realized his error and came back to MTFCU, where we were able to refinance his loan for a lower interest rate and ultimately save him thousands of dollars.

The moral of the story – don’t fall prey to the dealership sales pitch.

Avoid the hassle and talk to Members Trust first.

1. Get pre-approved.
2. Get a quote for an extended warranty vs. buying from the dealership. The extended warranties we sell are comprehensive yet affordable and you’ll probably save money with us.
3. If Guaranteed Auto Protection (GAP) is right for your situation, make that purchase through your credit union. Again, we offer an affordable, one-time premium that can be financed with your loan, and you’ll probably save money with us!
4. Finally, if you purchase both an extended warranty and GAP through MTFCU, you’ll receive a .375% discount off your stated annual percentage rate!

It pays to work with Members Trust for your auto loan needs. Contact us with any questions.

*Name changed to preserve member privacy.