Vestal Pontiac Buick GMC Truck

Welcome to Vestal's Finance Center.  On this page we wish to introduce you to the full range of our Finance Department's services.  When purchasing a new or used vehicle, obtaining the correct financing is often an overlooked yet critical element in the process.  The "correct" financing can be defined as obtaining the best rates possible at the time of purchase, tailoring the loan to the individual, while at the same time protecting the customer, the loan, and the vehicle itself.  Hopefully we can explain the services offered and the shed some light on some of the terminology finance centers use.

RATES

An experienced finance officer in a reputable dealership operates as a broker serving on the customer's behalf.  Since interest rates fluctuate, and sometimes fluctuate daily, our finance manager will shop the rates to procure the best rate for that particular customer.  "For that particular customer" is in reference to the fact that each customer will have their own unique credit score based on their handling of past debts.  It is true that one dealership can perform these responsibilities for the customer better than another.  Please let us show you what is widely considered as one of our greatest strengths.

GAP INSURANCE

On occasion during the history of a loan a customer can be in a "negative equity" situation.  "Negative equity" is simply defined as owing on the vehicle more than it is worth.   For example, when one owes $10,000.00 on a vehicle worth $7,000.00 he or she is said to be in a $3,000.00 negative equity position.  Other terms you may have heard used for negative equity are "upside down" or "in the bucket".

In the event a person should get in a car accident and the vehicle is "totaled" by the insurance company (which is at their discretion) the insurance company is legally obligated to reimburse the customer for only the current value of the vehicle, not the amount of the loan.  So if a customer is in a negative equity position, the lending bank in possession of the lien will demand that the customer pay the negative equity amount all at once, usually within 30 days of the accident.  Using the above example, the customer is then responsible for the $3,000.00 negative equity in cash or he/she must arrange for other financing, i.e. a home equity loan or credit card.  This is a real scenario that has plagued car owners for years.

Gap Insurance addresses this very issue.  For a nominal fee the negative equity is paid by the insurance company, not you.

EXTENDED SERVICE PLANS

            We have noticed that for years, publications have recommended against extended service contracts.  (Often incorrectly referred to as extended "warranties".  A warranty is a manufacture"s backing or assurance offered at no charge to the customer.  An Extended Service Plan is a contract paid for by the customer covering specified items.)  And no wonder there is negative publicity with the abundance of "fly-by-night" warranty companies out there who sell a bunch of contracts, file for chapter 7, pay no claims, and reopen under a new name.  But there is a significant distinction between warranty scams and extended service contracts offered by the manufacturer.

            Even though General Motors offers the most comprehensive manufacturer"s warranty in the business, an extended service contract still may be a wise decision.  For those customers who trade every three years or less, while the vehicle is still under the original manufacturer"s warranty, it would make no sense to purchase an extended service contract.  However, for those customers who keep a vehicle well after the expiration of the original bumper to bumper warranty, an extended service contract is a very good idea.  Although GM is building the best cars they've ever built, and even though they offer a 100,000 mile power train warranty, today's cars are computers on four wheels.  In reality they are multiple computers on four wheels. And power train warranties don't cover the computers or most electronics.  So once the bumper to bumper warranty expires, the customer exposes themselves to a risk of at times considerable expense in the event of a computer or electronic failure.  Documentation shows that GM is building the most reliable engines and transmissions in the business, but today's automotive problems are usually electronic.  A fully transferable extended service plan offered by General Motors themselves solves this problem.  It may very well be the wisest choice.

SMART CARE

            A relatively new but well received protection plan is Smart Care.  In the simplest terms it is a prepaid maintenance plan.  By prepaying a maintenance plan the customer can lock in today's prices and take advantage of incentivised low interest rates, finance the prepaid maintenance with the car, and never have to take money out of pocket for routine maintenance such as oil changes, oil filters,  lubes, and tire rotations.

TIRE AND WHEEL PROTECTION

            As wheel and tire prices have increased over the years the need for insuring them has arose.  And really now, how do so many nails and screws get onto the roads today?  There's nothing worse than buying a new car and blowing a tire (not covered under warranty if you pick up a nail) or hitting a curb and scratching your brand new 18 to 20 inch wheels.  There exists surprisingly inexpensive coverage for just these events.

            Hopefully, this enlightens you as to some of the services offered and terminology used by a reputable and qualified Finance Department.  If you have further questions please call us and ask for Robin, our Finance Director.