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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, because you’ll know how to:
•Determinewhattypeofcarisrightforyou.
•Secureyourautofinancingbeforeyoubegintoshop.
• Takecontrolofyourfinancingandpurchasingchoices.
Throughoutthisguideyou’llfindcalculatorsandworksheetsthatwillhelpyoudetermine which car is right for you. Fill them out, print them, and take them with you when you test drive or purchase your vehicle.
WELCOME
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AutoBuying Guide
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Your Budget Monthly Living Expense Worksheet The20%Rule
Researching Cars and Costs Pre-ownedVehicleResearch Pre-owned Car Inspection Checklist Accessories and Add-ons Accessories Checklist OnlineResearch Price Comparison Worksheet
Financing Your Car YourCreditScore WhenToFinance Finance with Capital One® AboutInterestRates Monthly Car Payment Calculator Auto Loan Amount Calculator
Where To Shop Capital One Auto BuyingSM
Making The Deal VisitingtheDealership Buying Your Car TradingYourCar SellingYourCar NegotiatingTips
Resources SummaryWorksheet OnlineAutoBuyingResearch CreditReportingBureaus Auto Buying Glossary
References Capital One Auto Finance®
Table of Contents
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www.capitalone.com/autoloans2010
AutoBuying Guide
the knowledge spotYour car payment should be
no higher than 20% of your monthly income1.
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MonthlyIncome&Savings:
MonthlyIncomeAfterTaxes $
Savings -$
Monthly Expenses:
Mortgage/RentPayment -$
Utilities -$
Food -$
Transportation -$
Insurance(Home,Auto,Life) -$
Clothing -$
Entertainment -$
Education -$
CreditCardPayments -$
OtherCreditorPayments -$
OtherVehiclePayments -$
Miscellaneous -$
Remainingbalanceforyourautopayment =$
Your BudgetThefirststeptowardbuyingacarisfindingouthowmuchyoucanspend.Todothat,enter your monthly income after taxes in the worksheet below and subtract your monthlyexpenses.Addadditionalexpenses,ifnecessary.Theremainingbalanceisanestimate of what you can put toward your monthly auto payment.
Monthly Living Expense Worksheet
The 20% Rule
Toestimateyourcarloanamountandmonthlyautopayment,usethe20%rule.Yourmonthlyautopaymentshouldn’texceed20%ofyournet monthlyincome.Simplymultiplyyournetmonthlyincomeby.20togetyourestimatedmonthlyautopayment.
NetMonthlyIncomeX20%(.20) Maximum Amount of Estimated Auto Payment
=$
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Calculate
2010AutoBuying Guide
Researching Cars and Costs
Financing Your Car
WhereToShop
Making TheDeal
Resources
YOuR BuDGET
2010AutoBuying Guide
the knowledge spot
Almost 85% of auto shoppers would consider buying a certified pre-owned vehicle3.
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Pre-owned Vehicle Research
Manypre-ownedcarsnowcomewithmanufacturer-sponsoredcertificationprogramsand extended warranties, which make them more reliable than before. It’s still good to giveapre-ownedcarathoroughinspectionjusttofindoutifanyrepairswillbeinyournear future.
Pre-owned Car Inspection Checklist
Area Inspected Pass/Fail
Exterior
Paint and chrome
Glass and metal surfaces
Leaks below engine
Tires
Treadwear
Sparetireandjack
Interior
Carpets and upholstery
Seatcontrols
Dashboard Controls
Windshield washer and wipers
Air conditioner, heater, & defroster
Lights
Dashboardandinteriorlights
Headlights, brake, turn signals
Start the Engine
Choke
Engine shaking or stalling
Make, Model, and Year:
_______________________
Odometer Mileage:
_______________________
Owner/Dealer:
_______________________
Asking Price:
_______________________
Address:
_______________________
_______________________
Phone:
_______________________
Date:
_______________________
Owner’s Manual Included:
Researching Cars and CostsChances 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 neworpre-ownedcar?Researchisthekeytofindingout.
RESEARChING CARS AND COSTS
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Your Budget
Financing Your Car
WhereToShop
Making TheDeal
Resources
2010AutoBuying Guide
the knowledge spot
74% of respondents said vehicle safety features and options are more important to them than they were five years ago4.
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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.Thiswillhelp you choose which accessories are necessary and help you stay within budget.
Features I Need These I Want These
Upgraded Engine
AutomaticTransmission
UpgradedorSportSuspension
TractionControl
AWD(AllWheelDrive)
UpgradedWheelsandTires
LeatherorHeatedSeating
OnStar®
UpgradedStereo
NavigationSystem
Cruise Control
AutoDimmingMirrors
Homelink
StoragePackage
UpgradedTrimPackage
Sunroof/Moonroof
TrailerTowingPackage
RESEARChING CARS AND COSTS
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Your Budget
Financing Your Car
WhereToShop
Making TheDeal
Resources
2010AutoBuying Guide
the knowledge spot
67% of newvehicle buyers use the Internet in their vehicle shopping process5.
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Online Research
TheInternetoffersmanyresourcesforcarshopperstoresearchvehicles,sellandbuycars,andfindacarloan.Tofindhistoryreportsonpre-ownedcars,visitCARFAX. Togetdetailedpricinginformation,includingmanufactureranddealershippricing,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. 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 Price on that vehicle. For more information on our Capital One Auto Buying program, see page 8.
Price Comparison Worksheet
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.
Make: Model: Style: Year:
Item MSRP Base Price
Invoice Price
Source #1 Price
Source #2 Price
Basic vehicle
Option package 1
Optionpackage2
Other options (Mfr. Code)
Destinationfees
Other fees
Rebate
Trade-in
Taxes
Totals
*TheCapitalOneAutoBuyingprogrammaynotbeavailableinallareas.
RESEARChING CARS AND COSTS
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Your Budget
Financing Your Car
WhereToShop
Making TheDeal
Resources
• Equifax • Experian • TransUnion
the knowledge spot
There are 3 credit bureaus in the United States that compile credit reports:
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Financing Your CarIt’simportanttounderstandyourcreditsituationbeforedeterminingifyoucanfinancea car, who your lender should be, and when you should begin the process of obtaining your auto loan.
Your Credit Score
Acreditscoreisanumberbetween300and850thatisusedtohelpdeterminethelikelihood 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 at least once a year. If you believe it’s inaccurate, you have the right to challenge that information.
499 and below
Very Risky
Risky Good Excellent
If your credit score is lower than you expected, here are some tips that could help you out:
•Consistentlypayyourbillsontime.
•Paydownyourdebt.
•Don’topenanewlineofcredit,likeacreditcardorhomeequityloan.
•Maintainasolidjobhistory. Don’tassumethatyoumusthaveperfectcredittoqualifyforacarloanwith Capital One Auto Finance®.Weofferanumberoffinancialoptionstailoredtoyourneeds,basedonyourcompletefinancialprofileandcredithistory.Plus,wehaveexceptional customer service and the No Hassle experience you deserve.
Credit Score Range
500to599 600to699 700andup
Source:SayPlanning.com8
FINANCING YOuR CAR
NOTE:Thiscreditscore scale is only an example. Capital One Auto Finance does not base credit decisions on this example.
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AutoBuying Guide
Your Budget
Researching Cars and Costs
WhereToShop
Making TheDeal
Resources
the knowledge spot
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When To Finance
Haveyourautofinancinginplacebeforeyouvisitthedealership.Thiswayyoucanfocusongettingthebestpriceforyourcar.You’llknowyourfinancingtermsupfront,andthat’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®andlockintoday’sinterestratefor45days.You’llhaveanonlinedecision 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 the Capital One Auto Finance Blank Check,youcancompareittootherautofinancingoffersyoureceive.Youcanchoosewhichautofinancingisbestforyou. Oh, you’re ready to apply today? Perfect, just visit www.capitalone.com/autoloans tofilloutaNoHassleAutoLoansm application. You’ve got nothing to lose!
About Interest Rates
Havingafixedinterestrateforthelifeofyourautoloanallowsyoutoknowwhatyourmonthlypaymentwillbemonthaftermonth,withnosurprises.SomefinancingcompaniesoffervariableAPRs(AnnualPercentageRates)thatfluctuatebasedonyourpayment history. IfyoufinancewithCapitalOneAutoFinance,theinterestratewillnotchange overtheentirelifeoftheloan.Thatmeansyouknowforsurehowmuchmoney you’llsavewhencomparingotherfinanceoffers.Ourratesarecompetitive,view our current auto loan rates now.
Apply Now
*BusinesshoursareMonday-Friday,9a.m.-9p.m.andSaturday,10a.m.-7p.m.ET. ClosedSundays.$15deliverychargewillapplytoovernighttheBlankCheck.
70% of consumers say they will negotiate financing on their next vehicle purchase7.
FINANCING YOuR CAR
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AutoBuying Guide
Your Budget
Researching Cars and Costs
WhereToShop
Making TheDeal
Resources
the knowledge spotThe average used vehicle loan for 2005 was
$16,4196
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APR % PleaseenteranAPR,suchas6.09.
Loan term months Enteraloantermbetween30and72months.
Loan amount Enteraloanamountbetween$7,500and$100,000.
Your Monthly Payment Results Based on the values you entered, here is the Monthly Auto Payment:
APR LoanTerm Loan Amount Monthly Auto Payment
Auto Loan Amount Calculator*
APR % PleaseenteranAPR,suchas6.09.
Loan term months Enteraloantermbetween30and72months.
Monthly payment Enter desired monthly payment.
Your Auto Loan Results Based on the values you entered, here is the Auto Loan amount:
APR LoanTerm Monthly Payment Loan Amount
Tohelpyoudecidewhatmonthlyautopaymentorloanamountfitsyourbudget,use the Monthly Car Payment and Auto Loan Amount Calculators below. Check out our current auto loan ratestogetanideaofwhatyourAPR(AnnualPercentageRate)couldbe.
Monthly Car Payment Calculator*
FINANCING YOuR CAR
*Thecalculatorisonlyintendedforestimates.
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Calculate Apply Now
2010AutoBuying Guide
Calculate Apply Now
Your Budget
Researching Cars and Costs
WhereToShop
Making TheDeal
Resources
the knowledge spotThe average new vehicle loan for 2005 was
$23,5346
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Where to ShopYou 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.
Capital One Auto Buying
If you want to avoid negotiating the price of your next vehicle, but still know you’re getting a great deal, then our Capital One Auto Buying program is perfect for you. When you register online you’ll get a low, No Hassle price on any vehicle purchased through a participating Capital One Auto Buying dealership. 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 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.
Remember,there’snoneedfornegotiating,soyou’llsavetimeatthedealership.Justtest-drive your car, complete the transaction, and off you’ll go! Tosaveevenmoretime,youcanfinanceaCapitalOneAutoBuyingpurchasewithourno-obligation Blank Check.Applyonlineinaslittleas30seconds!
*TheCapitalOneAutoBuyingprogrammaynotbeavailableinallareas.
Readytogetstarted?VisitCapitalOneAutoBuyingnow to get a low, No Hassle price on your next vehicle.
WhERE TO ShOP
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Get My Price
2010AutoBuying Guide
Your Budget
Researching Cars and Costs
Financing Your Car
Making TheDeal
Resources
the knowledge spot
Making the DealToooften,peopletrytonegotiateallelementsofacardealatonce.Thefactis,yourpurchase is several transactions that should be negotiated separately–besides securing autofinancing,thereisanegotiationassociatedwithbuyingthecarandtradingorselling a car that you already own or lease.
Visiting the DealershipThere’susuallyatleastonedealershipineverytownandtheyprovidetheopportunityfor you to get to know your options up close and personal. We suggest you visit a few to research the vehicles that you’re interested in and to take them for a test drive or two.
Buying Your CarThekeytofairnegotiationisequalknowledge.Youneedtoknowasmuchabouthowacar is priced as your sales consultant does. By researching vehicle pricing before heading to the dealership, you’ll become just as knowledgeable.
Trading Your CarYou 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 instead of the retail value? When the dealership buys your used car, they are taking on the extra costs of selling it to someone else. Visit Kelley Blue Book to understand more about car pricing.
Selling Your CarIf 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,letthemtest-driveyourcar,andhandlethefinancialtransaction.Tosavetime,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 features that are not on your need list.
• Ask Questions. Be sure to understand the dealership’s offer and have them explain each number presented to you.
• Be Prepared to Wait. Buying a vehicle is big commitment, so be prepared to take your time at the dealership.
• Get It in Writing.Havethesalesconsultantgiveyouaquotewiththeprice,terms, and options that are included in the deal.
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Over 80% of auto shoppers test-drove the vehicle before buying it2.
MAkING ThE DEAL
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Resources
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ResourcesNow 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.
Justfillouttheinformationbelow,printitoutandtakeitwithyouwhenyoutestdrive 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 atyourfingertips!
Summary Worksheet
My Vehicle
I am shopping for a: New Vehicle o Pre-Owned Vehicle o
Make: Model: Year:
My Top Three Needs Are (from page 3):
1.
2.
3.
My Top Three Wants Are (from page 3):
1.
2.
3.
My Budget (from page 1)
MonthlyIncomeAfterExpenses:$
MonthlyIncomeAfterTaxesx20%(.20):$
Auto Financing Details (from page 7)
AnnualPercentageRate(APR):
Auto Loan Amount:
AutoLoanTerm:months
Estimated Monthly Payment:
Auto Loan Application Details
AmountRequested:$
DateofApplication
DateofApproval
RESOuRCES
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Apply Now
2010AutoBuying Guide
Your Budget
Researching Cars and Costs
Financing Your Car
WhereToShop
Making TheDeal
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ResourcesOnline Auto Buying Resources
•Capital One Auto Finance®
•Capital One Auto BuyingSM
•AutoTrader.com
•Kelley Blue Book
•CARFAX
•Cars.com
Auto Buying Glossary
APR (Annual Percentage Rate), interest rate:Theyearlyratechargedtoaconsumertoborrowthefinancecompany’smoney.APRisusuallyexpressedasapercentage. Blank Check®: A Capital One Auto Finance®checkthatisgiventoqualifiedapplicantstopurchaseaneworusedvehicle.TheBlankCheckcanbeusedjustlikeapersonalcheckandgivestheloanrecipientflexibilityandconveniencewhenshoppingforavehicle.Thecheckisvaliduptothe approved amount and there’s no obligation to use the check. Depreciation:Thevalueanassetlosesduetowearandtearortime. Equity (vehicle):Thevalueofthevehicleminustheloanamount. 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 usuallymustbepurchasedbytheendofthefirstyearofownership. FICO:Themostcommonlyusedcreditscore.ThenamecomesfromtheFairIsaacCorporation,whichdevelopedthescoringmodel.Theyareusedtopredictthelikelihoodthatapersonwillpayhisorherdebts.Thescoreusesonlyinformationfromcreditreports. Interest:Theamountchargedbythefinancecompanytoborrowmoney. Invoice Price:Thisisthe“cost”amount,andisnormallythelowestpriceyouwillpayforanewcar. Occasionally, dealer incentives and rebates will drive down the price to below invoice price. Manufacturer’s Suggested Retail Price (MSRP):Theretailpricedeterminedbythemanufacturerandpostedonthewindowsticker.TheMSRPforavehicleincludesno additional options. Monthly Payment:Theprincipalandinterestpaidonamonthlybasisoverthelifeoftheloan.
Credit Reporting Bureaus
• Equifax
• Experian
• TransUnion
RESOuRCES
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AutoBuying Guide
Your Budget
Researching Cars and Costs
Financing Your Car
WhereToShop
Making TheDeal
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*TheCapitalOneAutoBuyingprogrammaynotbeavailableinallareas. ©2010.CapitalOneandCapitalOneAutoFinancearefederallyregisteredtrademarks.BlankCheckisaregisteredtrademarkof CapitalOneServices,Inc.CapitalOneAutoBuyingisafederallyregisteredservicemark.Allrightsreserved.
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Capital One Auto Finance®
FormoreinformationonautofinancingortoapplyforaCapitalOneAutoFinance 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 thisroadmaphasgivenyoutheconfidenceandinformationyouneedforanexcellentcar-buying experience. Now get out there and get a great deal on a great car.
RESOuRCES
References
1. Bankrate,“HowMuchCanYouAfford?,”Bankrate,http://www.bankrate.com/brm/green/auto basics1-5a.asp?caret=6(accessedMarch28,2007).
2. ArticleTrader,“LargePartofAutoMarketOutForCertifiedPre-OwnedVehicles, http://www.articletrader.com/automotive/large-part-of-auto-market-out-for-certified-pre- owned-vehicles.html&w=pre+owned+auto+buying+statistics&(accessedMay1,2007).
3. RoadandTravel,“Study:U.S.ConsumersPutMoreImportanceinAutoSafetyItems,” http://www.roadandtravel.com/newsworthy/newsandviews03/trwsafetyfeaturestudy.htm ByMartyBernstein,ContributingEditor,AIADA.(accessedApril11,2007).
4. AWARE–AmericansWell-informedonAutomobileRetailingEconomics, http://www.autofinancing101.org/resources/dealerinfo.asp (accessedMarch28,2007).
5. ClickZ,“WebIncreasesRoleinAutoBuying,”http://www.clickz.com/showPage. html?page=756491 (accessedMay1,2007).
6.SayPlanning,“WhatisYourCreditScore?,”http://www.sayplanning.com/ saygoodcredit/credit-score.html(accessedMay25,2007).
7. RoadandTravel,“SmarterAutoFinancing:Researchingfinancingforyournextcar:What youneedtoknow,”http://roadandtravel.com/autoadvice/2006/autofinancing.htm ByMartyBernstein,ContributingEditor,AIADA.(accessedMarch28,2007).
8. BenchmarkConsultingInternational,“ConsumerBankersAssociation2006 AutomobileFinanceStudy:Highlightsofthe2005Year-EndData,”2006,8.
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AutoBuying Guide
Your Budget
Researching Cars and Costs
Financing Your Car
WhereToShop
Making TheDeal
