Get the Best Deal With These Car Buying Tips
Buying your first car is a big accomplishment and a great milestone in your life. Saving up for this huge investment may not be easy, but being able to drive around town with ease makes it worth your while. Before you rush to the nearest auto dealership, here are some car buying tips to help you get the best deal:
Get a Loan Preapproval
Many lenders will preapprove you for a loan. Through this process, you will learn in advance how much you can borrow and at what interest rate. By getting preapproved for a personal auto loan before car shopping, you can set a realistic budget.
It is important to note that the preapproval process will require you to undergo a credit check. That is why you should make sure to correct any errors in your credit reports before applying for preapproval.
Beware of Longer-Term Loans
Choosing extended repayment periods for a lower monthly installment may seem like a good option at first glance. However, wise consumers should know that the shorter the loan term is, the more savings in interest they can actually get.
A good rule of thumb when considering a repayment period is to ask yourself whether you can afford to pay for a car in 60 months or more. If it’s the latter, then you might want to look for a different car at a lower price range instead.
Read the Fine Print
Before signing any documents, make sure to read the terms and conditions carefully. Pay attention to every detail to ensure that everything in your contract is favorable to you. Examine every item listed and confirm that you approve of every fee included in the contract. Once you’re ready to sign the papers, ask for a copy and make sure that it matches the original.
Apply for an Auto Loan
At OnPath Federal Credit Union, we provide our members with a wide range of auto loans at low rates. Our goal is to help you buy the car of your dreams with ease. Apply online today.