When it comes to buying a car, especially if it’s your first car, you may get this feeling of freedom that allows you to take to the open road. Mass transit is not common in much of the United States, especially non-urban areas, so owning a car can be a lifesaver for anyone who needs to get to work, visit family and friends, to get to their doctor’s appointments. So that’s what you get when you buy your first car – a newfound sense of freedom. Even replacing an older car can give you that free feeling.
However, if you’re looking to take out a car loan through us at Polam FCU, we’d like to share some important tips to ensure your car-buying experience is positive and fruitful from start to finish.
- Make sure to take check your budget first. This is probably one of the most important steps when it comes to taking out an auto loan. What does your current budget look like? Take into account how much you’ll have after your monthly bills, and in doing that, you’ll know just how much you can pay monthly for a car.
- Can you afford a down payment? If you have enough money saved to cover a down payment, you might have an easier loan experience with us. Our loans are flexible for your convenience, and one of our loan officers can work with you regarding what you will need going forward. Keeping money saved in our Vantage Savings accounts or our certificates of deposit can help you afford a down payment in time.
- Check your credit score before you begin shopping. Before you look into buying a new or used car, you should know your current credit score, as it can affect what kind of auto loan you can get, and can show how much per month you can pay for your new car. Websites like creditkarma.com and experian.com can assist you there.
- Set up a monthly payment limit. Before taking out a loan, ask yourself how much are you willing to pay per month on an auto loan. To determine what you are actually capable of spending, add up your total monthly expenses and subtract that number from your monthly income. It’s a good idea to stick to that number, as paying a higher auto loan payment can reduce any expendable cash you may need throughout each month.