The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
How to Start Looking for a New Car
In an ideal world, a car dealer helps you find the perfect car for you at the perfect price, and you drive away with a smile on your face and many happy years ahead of you. And that’s how it does work for many of those looking for a new car, who did their homework in advance, learning how to navigate the process and how to work with dealers.
Because some dealers put more emphasis on their profits than on their customers’ satisfaction, an educated car-buyer looking for a new car must know what he wants and for how much, so that he makes the transaction smooth and comfortable with no regrets as he leaves the lot.
Know what you want
The more clearly you know what you want, the less likely you are to be steered toward something you discover later you don’t want, or can’t afford. This includes the various options that come with a vehicle. If you don’t know exactly what you want, at least have your preference narrowed down to a few choices.
Research the vehicles on dealer Websites or automaker Websites. Also check out consumer publications such as Motor Trend, Car and Driver, and Consumer Reports‘ annual car-buying issue. Internet sites like edmunds.com are also valuable sources of information on looking for a new car.
Check the selection and pricing of several dealers in your area.
Know how much you want to pay
How much can you afford to pay for a new car, truck, minivan, or other vehicle? Factor that in so that you don’t get sold on something you can’t afford. The dealer will most likely ask you how much you can afford so that he or she knows what to offer you. Having a specific number handy can help you when it comes time to negotiate with a dealer.
A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
Have your financing in advance
If you can’t pay for a vehicle in cash or have someone else pay for it, are you preapproved for a loan? Compare the financing options offered by the dealer (if it offers financing) against those offered by your financial institution.
Mid Oregon can be your resource for financing when looking for a new car or truck. Review our Auto loan webpage, or contact a loan officer by email, phone (541) 382-1795, or in person at one of our seven Central Oregon branches.
Learn the pricing language
Several different prices are used in new-car dealings when you are looking for a new car.
Invoice price. This is the price that the manufacturer charges the dealer for the vehicle. It may actually be higher than what the dealer charges you because dealers get rebates, allowances, and various incentives from the manufacturers. In addition to the price of the vehicle, the invoice price should have the destination and delivery cost built into it.
Base price. This is the cost of the vehicle without any options.
MSRP. The manufacturer’s suggested retail price (MSRP) is the price that the manufacturer suggests the vehicle be sold. This price includes the manufacturer’s installed options and the factory warranty. This price is also known as the Monroney sticker price, after the US senator who sponsored legislation to require disclosure of information on new autos. By law, a sticker with the MSRP and the fuel economy information must be affixed to the car window.
Dealer sticker price. The dealer sticker price is the MSRP plus the suggested retail price of any dealer-installed options and any dealer markups.
Ordering a car
Sometimes dealers don’t have exactly what you want, so you can work with a dealer to order a car directly from the automaker and have it delivered to the dealer, where you can pick it up.
Buying on the Internet
You can also buy a new vehicle on the Internet, in which you will work with a dealer by email or phone.
Mid Oregon’s financial workshop, “Take the Wheel, Get The Best Car Deal”, can provide additional information to help you buy the right vehicle for the right price. To see upcoming Mid Oregon workshops, visit https://www.midoregon.com/education/financial-workshops.shtml.
Watch the recorded webinar version.
See workshop handouts and other available webinar videos and handouts.
Give a Financial Gift
Financial Gifts Can Improve Well-Being
Yes, you can grab some gift cards as a last minute gift choice. But how about something different? Give a financial gift.
If you really want to give a meaningful holiday gift this year, think beyond traditional items like clothing and gift cards. A recent survey conducted for Charles Schwab shows that more than half (53%) of those surveyed say cash to help pay off credit card bills would be their top choice as an unexpected holiday gift.
A holiday gift to pay down debt can help someone save on interest payments as well as help the recipient feel more financially secure as he or she grapples with debt.
Other financial gifts to consider:
• Piggy bank—This simple gift can go a long way toward educating even the youngest children about money. They quickly learn the concept of putting coins in the bank, then using the coins to make a purchase later. Buy a cute bank and fill it with coins or a few dollars. Some banks electronically add up coins each time a new one is deposited—seeing the amount grow can be motivating to kids. Another idea: Buy a small three-drawer container and set up a drawer each for saving, spending, and sharing.
• Sessions with a financial adviser—Arranging for a sit-down with a financial planner, if only for one or two sessions, can help someone learn personal finance basics and give him or her the groundwork for starting to invest. Contact Mid Oregon Credit Union for a referral.
• Cash toward a Roth IRA (individual retirement account)—“In addition to using cash to pay off credit card debt, another smart way to use holiday gift money is to encourage a working recipient to put the money into a Roth IRA,” says Michelle Dosher, in the Credit Union National Association’s consumer education and market research department. “Roth IRAs can be really beneficial, especially when people start them at a young age.”
• Electronic gadgets—Gadgets like tablets and smartphones are popular gifts, but you can add a financially savvy twist with personal finance apps, many of which are free or inexpensive. “If you’re going to give someone a gadget, also give suggestions of financial apps that could help teach money management skills, and encourage recipients to use your Credit Union’s mobile banking tools,” Dosher adds. This is a gift that teens and tweens can appreciate as well.
• Books—Help family members and friends learn to manage money by giving them a book about the topic. One idea is “Money Rules: The Simple Path to Lifelong Security,” by Jean Chatzky. It’s an easy read, broken up into sections about making and saving money, spending wisely, and investing.
• A financial jumpstart—Maybe you know a new grad or someone just getting back on his or her feet. You could help by offering your home as a place to stay for a month or two or by helping to pay a security deposit or first month’s rent. This would be a great gift for parents to give young adult children as they learn financial independence.
• Mid Oregon Credit Union membership—Let family members know that because you’re a credit union member they can be members. Tell them about the benefits of credit union membership and about the ease of using credit union services. Mid Oregon Membership is open to those who live, work, worship or go to school in Deschutes, Jefferson, Crook, Wheeler, Lake & North Klamath Counties, and to family of current members (See details at MidOregon.com).
The Importance of Having a Checking Account
About 14 million adults in the U.S. do not have an account with a credit union or bank. Whether this is by choice or because they don’t think they qualify to open an account, they end up missing out on many financial services that make life easier. Having a checking account can make a big difference.
For instance, instead of using a credit union to deposit their paychecks and getting only the cash they need, they use check-cashing stores like Check into Cash or other retailers. These operate by charging a fee of 1% to 6% of the check amount.
In addition, people without a credit union account don’t have a safe place to keep their funds. They are less likely to qualify for loans, and can’t earn interest on the money they save.
Checking Account Conveniences
There are many other conveniences to having a checking account:
• You can get a debit card or use a mobile wallet
• Using checks to pay your bills.
• You will be able to pay bills online, using electronic Bill Pay
• If your employer offers direct deposit, you can have your paychecks automatically deposited into your account. This means you will get your money faster. So you won’t need to go to a branch or ATM to make the deposit.
• Get cash for just a portion of your paycheck and leave the rest in your account. This means you won’t have to carry large amounts of cash on you.
• Your money will be safe in your account from theft, fire, or loss. And it’s also insured, so if something should happen to the credit union, your money is covered up to $250,000.
Opening a checking account is very easy. You’ll need a Social Security number [or ITIN], two forms of identification, and $50 for the first deposit.
Simply Free Checking
Many banks charge checking account fees, some as high as $9 a month. But at Mid Oregon Credit Union, you can get a Simply Free Checking account. Enjoy no monthly maintenance fees and no minimum balance requirements. And when you become a member, you become a co-owner of the credit union. Among the perks are lower loan rates and higher savings rates than you would get at banks or other financial institutions.
To get started, see the available checking accounts at www.midoregon.com, where you can find out the best checking account for you using our online checking chooser. Or, contact us by calling (541) 382-1795, emailing to info@midoregon.com or meeting with a Account Representative at a convenient Central Oregon branch office.