Buying a New Car

Buying a new car is exciting, but it is also a big expense.  We are here to help.

The process of purchasing a vehicle can feel overwhelming but here are a few steps that can make the venture a little easier.

Consider your budget

Figuring out your budget should be the first step when thinking about purchasing a new vehicle.

Things to think about:

• What are you comfortable paying each month?
• Do you have money for a down payment?
• Do you have a current vehicle to trade in?  What is its value?
• Can you afford the ‘hidden costs’ (e.g. gas, maintenance, repairs, and insurance) of a vehicle? 

Most of us are unable to walk into a dealership and pay cash for a new or used vehicle.  That means a loan will be necessary to get the vehicle you want.

Remember, you may have to put money down in order to secure financing. The more you pay up front, the less you will have to pay in interest in the future.   Make sure you are realistic about how much money you can use as a down payment and how much money you will need to borrow.  You do not want to spend more than you can afford.

Use our Car Affordability calculator to play with some numbers.

Review your credit report

Credit history is one of the most important pieces of information lenders look at. This will determine what kind of interest rate you can receive for your new vehicle loan.

A good credit score might help you get a lower interest rate, and the flip side of that is also true – a lower credit score may result in a higher interest rate.

Consider reviewing your credit report to ensure that all of the information on it is accurate before applying for a loan.

You can visit AnnualCreditReport.com to access a free credit report.

Shop around

Knowledge is power when it comes to purchasing a vehicle. Before making your purchase, make sure to research various websites, visit multiple car dealers, and consult a lender about your financing options.

Being prepared can help ensure you will know what to expect to pay for the vehicle you want!

Choose the right loan

The terms of your loan can make a big difference in how much you will ultimately pay for your new vehicle. You should make sure that you are comfortable with the details of your loan, including the interest rate and how long it will take to pay the loan off.

It is easy for loan terms to put you outside of your budget so make sure to carefully compare the two when making a final decision.

As soon as you find the right car or truck and know how much you will need to borrow, be sure to let us know.  You can talk to one of our loan experts if you have any questions and let us steer you to a loan that works best for you.

For more information about auto loans or vehicle refinancing call one of our locations to speak with an experienced lender or learn more about loan options here.