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Auto Loan Tips

Always call your car insurance BEFORE you buy a new car. People often forget car insurance is different for each vehicle type. Make sure your new car payment & insurance premium fit in your budget before you buy.
Before you go car shopping, download a free loan calculator to your phone. Run the numbers yourself at the dealership to choose incentives, avoid gimmicks, and understand the impact of different loan terms.
Did You Know? The credit union offers GAP & Extended Warranties on vehicles for usually 50% LESS THAN what dealerships charge. Get PRE-APPROVED before you go car shopping to avoid paying too much.
Buying a New Car? NEVER feel rushed! Dealerships will often pressure you to buy now. The car will most likely be there tomorrow or they can find another. Buying a car is a big financial investment – take your time.
Know your car’s Trade-In Value BEFORE you visit a dealership. This will help you get the most for your trade. Visit J.D. Power and www.kbb.com to determine your trade-in value.
Buying a New Car? Focus on PRICE, Not Payments. Dealers can easily make a vehicle out of your budget fit into your monthly budget by extending loan terms & other funny math tricks. Negotiate the TOTAL PRICE, not payments.
Imagine no car payments for 6 months, a year, 2 years… If your car payment is $300, that’s $3,600 per year you could save! If you LEASE a car, you’ll never enjoy that money. Leasing guarantees you’ll ALWAYS have a car payment.
If your credit score increased since you originally purchased your car, refinancing may be a great solution for you. Switch your auto loan to the credit union from your current lender and lock in better rates.
Is your credit score on the rise? If your score increased since you originally bought your car, you may qualify for lower interest rates. Consider switching your loan to the credit union to lower your monthly payments.
Preowned vehicles are a great way to save money all around. With a lower price tag than new cars, you’ll save on interest costs, pay the loan off quicker with shorter terms, and typically pay less in auto insurance.
When buying a vehicle, try to make a down payment of 20% (including your trade-in). Vehicles depreciate quickly and larger down payments will help maintain equity and avoid owing more than the car is worth.
Car Buying Tip: If you’re ever at a dealership and unsure about offers or incentives, give us a call. Our Loan Experts are happy to run numbers with you over the phone to help you make the best financial decisions.
When buying a new or preowned vehicle, ask the dealer for a price quote and a breakdown of all the costs and fees. When you have all the pricing upfront and in writing, it’s easier to make smart financial decisions.
A PRE-APPROVAL gives you the upper hand when negotiating prices at a car dealership. If the dealer is trying to convince you to finance elsewhere, this is a key warning sign! If you have questions, call us before you sign.
Got GAP? If you total your car beyond repair, insurance will pay the current value of your car – not what you owe. The difference or “gap” is your responsibility. GAP protects you against this scenario.
Buying a New Car? Do RESEARCH first! A couple hours of researching trade-in values, incentives, vehicle types, etc. could help you save big. Saving $100’s for a few hours of work is a definite win!
Buying a New Car? Try to keep your loan term to 60 months (5 years). Dealers often recommend longer terms, such as 72 or 84 months (6-7 years) to get your payment lower. This can leave you owing more than the car is worth.
Many dealers mislead people by promoting extremely low auto rates that very few will qualify to receive. Stop by & get a Pre-Approval BEFORE you visit a dealership. You’ll know exactly what you’ll pay for your loan – no gimmicks included!
When buying a new car, first negotiate the price of the car. Once the price is agreed on, THEN mention you have a trade-in. Keep the two items separate or dealerships will try to lump them together in their favor.
Before buying a used car, always pull a vehicle history report, such as CarFax.com. The report will detail if the car was in an accident or other issues. Many dealerships provide this report at no cost.
When comparing car insurance quotes, make sure you’re looking at apples-to-apples. Many online quotes leave out steps where you can customize personal liability amounts and other features so their quote is lower.
If you’re ready to buy a new car, consider using your tax refund as a down payment. Doing so will help you lower your monthly payments and pay less interest over the life of your loan.
Looking to buy a new car? A good rule of thumb is to not spend more than 20% of your total monthly household income on all vehicles within your household. This calculation includes gas, insurance, and maintenance costs.