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Capital One Auto Finance 2008 Auto Buying Guide

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  • 1. Auto 2010 Buying Guide A Road Map to Your Next Car 
  • 2. Auto 2010 Buying Guide www.capitalone.com/autoloans Congratulations! You made the right choice by getting your hands on this 2010 Capital One® Auto Buying Guide. And you just took the first step toward getting into your next vehicle! We’re going to help you develop a road map for purchasing your next car by introducing you to what you need to know before you head to the dealership. By the time you reach the end of this guide, you’ll be car shopping with confidence, WELCOME because you’ll know how to: • Determine what type of car is right for you. • Secure your auto financing before you begin to shop. • Take control of your financing and purchasing choices. Throughout this guide you’ll find calculators and worksheets that will help you determine which car is right for you. Fill them out, print them, and take them with you when you test drive or purchase your vehicle. E-MAIL BACK NEXT PRINT i
  • 3. Auto 2010 Buying Guide www.capitalone.com/autoloans Table of Contents Your Budget Monthly Living Expense Worksheet The 20% Rule Researching Cars and Costs Pre-owned Vehicle Research Pre-owned Car Inspection Checklist Accessories and Add-ons Accessories Checklist Online Research Price Comparison Worksheet Financing Your Car Your Credit Score When To Finance Finance with Capital One® About Interest Rates Monthly Car Payment Calculator Auto Loan Amount Calculator Where To Shop Capital One Auto BuyingSM Making The Deal Visiting the Dealership Buying Your Car Trading Your Car Selling Your Car Negotiating Tips Resources Summary Worksheet Online Auto Buying Research Credit Reporting Bureaus Auto Buying Glossary References Capital One Auto Finance® E-MAIL BACK NEXT PRINT ii
  • 4. Auto 2010 Buying Guide www.capitalone.com/autoloans Your Budget The first step toward buying a car is finding out how much you can spend. To do that, enter your monthly income after taxes in the worksheet below and subtract your monthly expenses. Add additional expenses, if necessary. The remaining balance is an estimate of what you can put toward your monthly auto payment. Monthly Living Expense Worksheet YOuR BuDGET Monthly Income & Savings: Monthly Income After Taxes $ 0.00 Researching Cars and Costs Savings -$ 0.00 Monthly Expenses: Financing Your Car Mortgage/Rent Payment -$ 0.00 Utilities -$ 0.00 Where To Shop Food -$ 0.00 Transportation -$ 0.00 Making Insurance (Home, Auto, Life) -$ 0.00 The Deal Clothing -$ 0.00 Resources Entertainment -$ 0.00 Education -$ 0.00 Credit Card Payments -$ 0.00 Other Creditor Payments -$ 0.00 Other Vehicle Payments -$ 0.00 Miscellaneous -$ 0.00 the knowledge Remaining balance for your auto payment =$ spot 0.00 Your car payment should be The 20% Rule no higher than20% of your monthly income1. To estimate your car loan amount and monthly auto payment, use the 20% rule. Your monthly auto payment shouldn’t exceed 20% of your net monthly income. Simply multiply your net monthly income by .20 to get your estimated monthly auto payment. $0.00 = $ 0.00 Net Monthly Income X 20% (.20) Maximum Amount of Estimated Auto Payment Calculate E-MAIL BACK NEXT PRINT 1
  • 5. Auto 2010 Buying Guide www.capitalone.com/autoloans Researching Cars and Costs Chances are, your heart was already set on a particular car before you came across this guide, but is it the best option for your lifestyle and budget? Are you better off with a new or pre-owned car? Research is the key to finding out. Pre-owned Vehicle Research Many pre-owned cars now come with manufacturer-sponsored certification programs Your Budget and extended warranties, which make them more reliable than before. It’s still good to give a pre-owned car a thorough inspection just to find out if any repairs will be in your RESEARChING near future. CARS AND COSTS Financing Your Car Pre-owned Car Inspection Checklist Where To Shop Area Inspected Pass/Fail Make, Model, and Year: Exterior _______________________ Making Paint and chrome Odometer Mileage: The Deal Glass and metal surfaces _______________________ Resources Leaks below engine Owner/Dealer: Tires _______________________ Tread wear Asking Price: Spare tire and jack Interior _______________________ Carpets and upholstery Address: the Seat controls _______________________ knowledge Dashboard Controls _______________________ spot Windshield washer and wipers Phone: Air conditioner, heater, & defroster Almost 85% of Lights _______________________ auto shoppers would Dashboard and interior lights Date: consider buying a certified _______________________ Headlights, brake, turn signals pre-owned vehicle3. Start the Engine Owner’s Manual Included: Choke Yes No Engine shaking or stalling E-MAIL BACK NEXT PRINT 2
  • 6. Auto 2010 Buying Guide www.capitalone.com/autoloans Accessories and Add-ons Accessories and add-ons can increase the value of the car, but understand that they will also increase the total price and your monthly auto loan payment. Below, we’ve listed popular accessories that you may want to add on to your new vehicle. Accessories Checklist From the list below, mark which items you consider to be a need or a want. This will Your Budget help you choose which accessories are necessary and help you stay within budget. RESEARChING Features I Need These I Want These CARS AND COSTS Upgraded Engine Financing Automatic Transmission Your Car Upgraded or Sport Suspension Traction Control Where To Shop AWD (All Wheel Drive) Upgraded Wheels and Tires Making Leather or Heated Seating The Deal On Star® Resources Upgraded Stereo Navigation System Cruise Control Auto Dimming Mirrors Homelink Storage Package the Upgraded Trim Package knowledge Sunroof/Moonroof spot Trailer Towing Package 74% of respondents said vehicle safety features and options are more important to them than they were five years ago4. E-MAIL BACK NEXT PRINT 3
  • 7. Auto 2010 Buying Guide www.capitalone.com/autoloans Online Research The Internet offers many resources for car shoppers to research vehicles, sell and buy cars, and find a car loan. To find history reports on pre-owned cars, visit CARFAX. To get detailed pricing information, including manufacturer and dealership pricing, search Kelley Blue Book. And if you’re looking to buy or sell your vehicle privately, AutoTrader and Cars.com are well-known and widely used resources. We’ve developed our own online resource with our Capital One Auto BuyingSM* program. Your Budget When you visit www.CapitalOneAutoBuying.com, you’ll be able to research new and pre- owned cars, reserve that car at one of our partner dealerships, and get a low, No Hassle RESEARChING Price on that vehicle. For more information on our Capital One Auto Buying program, see CARS AND COSTS page 8. Financing Price Comparison Worksheet Your Car As you narrow your car search, the Price Comparison worksheet below will help you determine an estimated price for the vehicle you’re interested in. Where To Shop Make: Model: Style: Year: Making The Deal Item MSRP Base Invoice Source Source Price Price #1 Price #2 Price Basic vehicle $0.00 $0.00 $0.00 $0.00 $0.00 Resources Option package 1 0.00 0.00 0.00 0.00 0.00 Option package 2 0.00 0.00 0.00 0.00 0.00 Other options 0.00 0.00 0.00 0.00 0.00 (Mfr. Code) Destination fees 0.00 0.00 0.00 0.00 0.00 Other fees the 0.00 0.00 0.00 0.00 0.00 knowledge Rebate 0.00 0.00 0.00 0.00 0.00 spot Trade-in 0.00 0.00 0.00 0.00 0.00 Taxes 0.00 0.00 0.00 0.00 0.00 67% of new Totals $0.00 $0.00 $0.00 $0.00 $0.00 vehicle buyers use the Internet in their vehicle shopping process5. *The Capital One Auto Buying program may not be available in all areas. E-MAIL BACK NEXT PRINT 4
  • 8. Auto 2010 Buying Guide www.capitalone.com/autoloans Financing Your Car It’s important to understand your credit situation before determining if you can finance a car, who your lender should be, and when you should begin the process of obtaining your auto loan. Your Credit Score A credit score is a number between 300 and 850 that is used to help determine the Your Budget likelihood of a borrower paying back a loan. Your score is determined in part by your credit payment history. It’s a great idea to review your credit report for accuracy Researching at least once a year. If you believe it’s inaccurate, you have the right to challenge Cars and Costs that information. FINANCING Credit Score Range YOuR CAR 499 and below 500 to 599 600 to 699 700 and up Where To Shop Making NOTE: This credit The Deal score scale is only Very Risky Good Excellent an example. Capital Risky One Auto Finance Resources does not base credit decisions on this example. Source: SayPlanning.com8 If your credit score is lower than you expected, here are some tips that could help you out: the • Consistently pay your bills on time. knowledge • Pay down your debt. spot • Don’t open a new line of credit, like a credit card or home equity loan. 3 • Maintain a solid job history. There are credit bureaus in the United States that Don’t assume that you must have perfect credit to qualify for a car loan with compile credit reports: Capital One Auto Finance®. We offer a number of financial options tailored to your • Equifax needs, based on your complete financial profile and credit history. Plus, we have • Experian exceptional customer service and the No Hassle experience you deserve. • TransUnion E-MAIL BACK NEXT PRINT 5
  • 9. Auto 2010 Buying Guide www.capitalone.com/autoloans When To Finance Have your auto financing in place before you visit the dealership. This way you can focus on getting the best price for your car. You’ll know your financing terms up front, and that’s one less thing to negotiate at the dealership. Finance with Capital One® You can apply online now for a no-obligation Blank Check® through Capital One Auto Finance® and lock in today’s interest rate for 45 days. You’ll have an online Your Budget decision within minutes during business hours, so if you already know what you want to buy, you can shop as soon as tomorrow*! And since there’s no pressure to use Researching the Capital One Auto Finance Blank Check, you can compare it to other auto financing Cars and Costs offers you receive. You can choose which auto financing is best for you. FINANCING Oh, you’re ready to apply today? Perfect, just visit www.capitalone.com/autoloans YOuR CAR to fill out a No Hassle Auto Loansm application. You’ve got nothing to lose! Where To Shop Apply Now Making About Interest Rates The Deal Having a fixed interest rate for the life of your auto loan allows you to know what your monthly payment will be month after month, with no surprises. Some financing Resources companies offer variable APRs (Annual Percentage Rates) that fluctuate based on your payment history. If you finance with Capital One Auto Finance, the interest rate will not change over the entire life of the loan. That means you know for sure how much money you’ll save when comparing other finance offers. Our rates are competitive, view our current auto loan rates now. the knowledge spot 70% of consumers say they will negotiate financing on their next vehicle purchase7. *Business hours are Monday-Friday, 9 a.m.- 9 p.m. and Saturday, 10 a.m. - 7 p.m. ET. Closed Sundays. $15 delivery charge will apply to overnight the Blank Check. E-MAIL BACK NEXT PRINT 6
  • 10. Auto 2010 Buying Guide www.capitalone.com/autoloans To help you decide what monthly auto payment or loan amount fits your budget, use the Monthly Car Payment and Auto Loan Amount Calculators below. Check out our current auto loan rates to get an idea of what your APR (Annual Percentage Rate) could be. Monthly Car Payment Calculator* APR 1.00 % Please enter an APR, such as 6.09. Loan term 30 months Enter a loan term between 30 and 72 months. Your Budget Loan amount $7,500 Enter a loan amount between $7,500 and $100,000. Calculate Apply Now Researching Cars and Costs Your Monthly Payment Results Based on the values you entered, here is the Monthly Auto Payment: FINANCING YOuR CAR APR Loan Term Loan Amount Monthly Auto Payment 1.00 30 $7,500 $253.24 Where To Shop Making The Deal Auto Loan Amount Calculator* APR 1.00 % Please enter an APR, such as 6.09. Resources Loan term 30 months Enter a loan term between 30 and 72 months. Monthly payment $253.24 Enter desired monthly payment. Calculate Apply Now Your Auto Loan Results Based on the values you entered, here is the Auto Loan amount: the knowledge APR Loan Term Monthly Payment Loan Amount spot 1.00 30 $253.24 $7,500 The average used vehicle loan for 2005 was $16,419 6 *The calculator is only intended for estimates. E-MAIL BACK NEXT PRINT 7
  • 11. Auto 2010 Buying Guide www.capitalone.com/autoloans Where to Shop You have several options when it comes to shopping for your next car. We’ve already mentioned a few online resources where you can research and even buy your next car. Keep in mind you could always go the traditional route and visit your local dealership. Or you could take advantage of our Capital One Auto BuyingSM* program when shopping for your next car. Your Budget Capital One Auto Buying If you want to avoid negotiating the price of your next vehicle, but still know you’re Researching getting a great deal, then our Capital One Auto Buying program is perfect for you. Cars and Costs When you register online you’ll get a low, No Hassle price on any vehicle purchased through a participating Capital One Auto Buying dealership. Financing Your Car Just visit www.CapitalOneAutoBuying.com and you’ll discover a huge inventory of new and used vehicles to choose from. You can research and select a new car online or look WhERE TO ShOP for the ideal pre-owned vehicle. Once you determine which car you want, you’ll receive your low, No Hassle Price. Next, we’ll direct you to a participating dealership where you can test-drive your car and complete the buying process. Making The Deal Remember, there’s no need for negotiating, so you’ll save time at the dealership. Just test-drive your car, complete the transaction, and off you’ll go! Resources To save even more time, you can finance a Capital One Auto Buying purchase with our no-obligation Blank Check. Apply online in as little as 30 seconds! Ready to get started? Visit Capital One Auto Buying now Get My Price to get a low, No Hassle price on your next vehicle. the knowledge spot The average new vehicle loan for 2005 was $23,534 6 *The Capital One Auto Buying program may not be available in all areas. E-MAIL BACK NEXT PRINT 8
  • 12. Auto 2010 Buying Guide www.capitalone.com/autoloans Making the Deal Too often, people try to negotiate all elements of a car deal at once. The fact is, your purchase is several transactions that should be negotiated separately–besides securing auto financing, there is a negotiation associated with buying the car and trading or selling a car that you already own or lease. Visiting the Dealership Your Budget There’s usually at least one dealership in every town and they provide the opportunity for you to get to know your options up close and personal. We suggest you visit a few to Researching research the vehicles that you’re interested in and to take them for a test drive or two. Cars and Costs Buying Your Car The key to fair negotiation is equal knowledge. You need to know as much about how a Financing car is priced as your sales consultant does. By researching vehicle pricing before heading Your Car to the dealership, you’ll become just as knowledgeable. Trading Your Car Where To Shop You can expect a dealership to offer the wholesale value of your trade-in, minus deductions for excessive wear and tear and high mileage. Why the wholesale value MAkING instead of the retail value? When the dealership buys your used car, they are taking on ThE DEAL the extra costs of selling it to someone else. Visit Kelley Blue Book to understand more about car pricing. Resources Selling Your Car If you want to get a higher price on your current vehicle, consider selling your car privately. Just remember, you’ll have to advertise it, take the calls, meet the prospective buyers, let them test-drive your car, and handle the financial transaction. To save time, consider Cars.com or AutoTrader to advertise and sell your car online. Negotiating Tips • Be Flexible on Features. Be prepared to compromise, but only on the extra the knowledge features that are not on your need list. spot • Ask Questions. Be sure to understand the dealership’s offer and have them explain each number presented to you. Over 80% of auto shoppers test-drove the • Be Prepared to Wait. Buying a vehicle is big commitment, so be prepared to take your time at the dealership. vehicle before buying it2. • Get It in Writing. Have the sales consultant give you a quote with the price, terms, and options that are included in the deal. E-MAIL BACK NEXT PRINT 9
  • 13. Auto 2010 Buying Guide www.capitalone.com/autoloans Resources Now that you’ve worked your way through this guide, take a minute to review what you’ve learned. We’ve summarized most of our worksheets into this condensed version. Just fill out the information below, print it out and take it with you when you test drive or purchase your next vehicle. Or if you decide to shop online, this will come in handy if it’s close by. You won’t have to print out this entire guide and you’ll have all of the information at your fingertips! Your Budget Summary Worksheet Researching My Budget (from page 1) Cars and Costs Monthly Income After Expenses: $ 0.00 Financing Monthly Income After Taxes x 20% (.20): $ 0.00 Your Car Where To Shop My Vehicle I am shopping for a: New Vehicle o Pre-Owned Vehicle o Making Make: Model: Year: The Deal My Top Three Needs Are (from page 3): 1. --select from list-- RESOuRCES 2. --select from list-- 3. --select from list-- My Top Three Wants Are (from page 3): 1. --select from list-- 2. --select from list-- 3. --select from list-- Auto Financing Details (from page 7) Monthly Calc Amount Calc Annual Percentage Rate (APR): 1.00 Auto Loan Amount: $7,500 Auto Loan Term: months 30 Estimated Monthly Payment: $253.24 Auto Loan Application Details Apply Now Amount Requested: $ 0.00 Date of Application Date of Approval E-MAIL BACK NEXT PRINT 10
  • 14. Auto 2010 Buying Guide www.capitalone.com/autoloans Resources Online Auto Buying Resources Credit Reporting Bureaus • Capital One Auto Finance ® • Equifax • Capital One Auto Buying SM • Experian • AutoTrader.com • TransUnion • Kelley Blue Book Your Budget • CARFAX • Cars.com Researching Cars and Costs Auto Buying Glossary Financing APR (Annual Percentage Rate), interest rate: The yearly rate charged to a consumer to Your Car borrow the finance company’s money. APR is usually expressed as a percentage. Where To Shop Blank Check®: A Capital One Auto Finance® check that is given to qualified applicants to purchase a new or used vehicle. The Blank Check can be used just like a personal check and gives the loan recipient flexibility and convenience when shopping for a vehicle. The check is valid up to Making the approved amount and there’s no obligation to use the check. The Deal Depreciation: The value an asset loses due to wear and tear or time. RESOuRCES Equity (vehicle): The value of the vehicle minus the loan amount. Extended warranty: Also known as a service contract. A contract that covers certain car repairs or problems after the manufacturer’s or dealer’s warranty expires. Extended warranties are sold by car manufacturers, dealers, and independent companies. With a new car, the extended warranty usually must be purchased by the end of the first year of ownership. FICO: The most commonly used credit score. The name comes from the Fair Isaac Corporation, which developed the scoring model. They are used to predict the likelihood that a person will pay his or her debts. The score uses only information from credit reports. Interest: The amount charged by the finance company to borrow money. Invoice Price: This is the “cost” amount, and is normally the lowest price you will pay for a new car. Occasionally, dealer incentives and rebates will drive down the price to below invoice price. Manufacturer’s Suggested Retail Price (MSRP): The retail price determined by the manufacturer and posted on the window sticker. The MSRP for a vehicle includes no additional options. Monthly Payment: The principal and interest paid on a monthly basis over the life of the loan. E-MAIL BACK NEXT PRINT 11
  • 15. Auto 2010 Buying Guide www.capitalone.com/autoloans References 1. Bankrate, “How Much Can You Afford?,” Bankrate, http://www.bankrate.com/brm/green/auto basics1-5a.asp?caret=6 (accessed March 28, 2007). 2. ArticleTrader, “Large Part of Auto Market Out For Certified Pre-Owned Vehicles, http://www.articletrader.com/automotive/large-part-of-auto-market-out-for-certified-pre- owned-vehicles.html&w=pre+owned+auto+buying+statistics& (accessed May 1, 2007). 3. Road and Travel, “Study: U.S. Consumers Put More Importance in Auto Safety Items,” Your Budget http://www.roadandtravel.com/newsworthy/newsandviews03/trwsafetyfeaturestudy.htm By Marty Bernstein, Contributing Editor, AIADA. (accessed April 11, 2007). Researching 4. AWARE – Americans Well-informed on Automobile Retailing Economics, Cars and Costs http://www.autofinancing101.org/resources/dealerinfo.asp (accessed March 28, 2007). 5. ClickZ, “Web Increases Role in Auto Buying,” http://www.clickz.com/showPage. Financing html?page=756491 (accessed May 1, 2007). Your Car 6. SayPlanning, “What is Your Credit Score?,” http://www.sayplanning.com/ Where To Shop saygoodcredit/credit-score.html (accessed May 25, 2007). 7. Road and Travel, “Smarter Auto Financing: Researching financing for your next car: What Making you need to know,” http://roadandtravel.com/autoadvice/2006/autofinancing.htm The Deal By Marty Bernstein, Contributing Editor, AIADA. (accessed March 28, 2007). 8. Benchmark Consulting International, “Consumer Bankers Association 2006 RESOuRCES Automobile Finance Study: Highlights of the 2005 Year-End Data,” 2006, 8. Capital One Auto Finance® For more information on auto financing or to apply for a Capital One Auto Finance no-obligation Blank Check®, visit capitalone.com/autoloans. And for online car shopping, take a moment to visit the Capital One Auto BuyingSM* program. We hope this road map has given you the confidence and information you need for an excellent car-buying experience. Now get out there and get a great deal on a great car. *The Capital One Auto Buying program may not be available in all areas. ©2010. Capital One and Capital One Auto Finance are federally registered trademarks. Blank Check is a registered trademark of Capital One Services, Inc. Capital One Auto Buying is a federally registered service mark. All rights reserved. E-MAIL BACK PRINT 12

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