If you’re in the market for a new vehicle, it can be challenging to find the right auto loan or lender for you. With the economy improving and car sales booming, auto lenders are pickier than ever about who they loan to and at what rates. Learn tips and tricks about how to save money on auto loans and get the best deal possible on a new or used car this spring!
Improve Your Finances Before You Buy
One of the most important factors that auto lenders consider when choosing to finance your car purchase is credit score and debt level. If you have poor or no credit, it can be especially challenging to find a rate that you can afford. Repairing your credit score and financial outlook takes some work, but several ways to get started include:
- Opening a savings or checking account at a bank or credit union
- Applying for a secured credit card to boost your credit score
- Budgeting and cutting down on unnecessary expenses
- Making sure that your total debt doesn’t exceed 30% of your total income
Know the Auto Loan Basics
If you are unsure of how to navigate the basics of auto lending, you can quickly find yourself wrapped up in a deal that doesn’t make sense for you or your financial situation. Keep the following pointers in mind to get a better deal on your auto loan right off the bat:
- Make a large down payment up front to keep loan amounts low
- Take on the shortest loan you are able to pay less in the long run
- Understand the terms of your loan and read the fine print
Look For Cars Within Your Means
While you may want a shiny, brand new vehicle, better auto loan rates often come with used cars. It is also important to consider the many costs associated with a car that you want versus a car that you need. Think about what you’ll actually need the car for on a daily basis, rather than what you want out of its appearance or horsepower. Maintaining a vehicle when factoring in mileage, repair costs, fuel prices and other expenses is very different from the price you pay initially.
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Build a Strong Relationship with a Credit Union
Credit unions typically have lower interest rates than banks and car dealerships, which is why building a relationship with one can help you get a great rate on your next auto loan. Simply opening a basic checking or savings account with a credit union is a great way to begin building your relationship with an institution that can save you thousands in interest payments down the road!
Let MNFCU Help You Score a Great Rate on Your Next Auto Loan!
At MNFCU, our mission is to help you get the most value for your money and be the partner you need for a healthy financial future. No matter the vehicle you’re in the market for, let us help you get the best auto loan in Waterford or Holly, Michigan for your needs at our affordable rates.