Certainly, everyone will take different paths in life. But chances are every one of us will experience purchasing a vehicle at one time or another. Whether it’s brand new or just new to you, buying a car can be an intimidating process. The WWFCU Financial Gurus are here to help guide you through the financing aspects of making such a significant purchase.
Where do you start?
Before you start shopping for a car, take a good look at your monthly budget. You’ll want to have a realistic idea of a monthly payment you can comfortably afford. Don’t forget to consider the costs of car insurance, gas, and regular maintenance. If you need help with this, our certified financial counselors have the tools to assist you.
Saving for a downpayment on a vehicle is a great place to start as well. The less you have to finance on a vehicle, the lower your monthly payments will be. A down payment will also save you on the finance charges you will pay over during the term of the loan. Making a downpayment can sometimes help with your chances of approval too, or help you meet certain approval criteria like the max loan to value ratio lenders use. You can start small, try saving $10 per paycheck and increase it further when you’re comfortable.
Another great idea would be to get pre-approved for the loan. This will give you an idea of what the lender is willing to loan as well as if there will be any stipulations for your approval. For example, those borrowers with no credit history might need a co-signer to secure the pre-approval.
Next Steps
As mentioned earlier, keep in mind the added expense of car insurance. Before you commit to a vehicle, get a quote on car insurance to see how much it will cost you monthly to insure the vehicle. Is the cost of insurance in your budget or does it justify the purchase of the vehicle? It’s also a good idea to shop around a bit as well. Getting quotes through multiple insurance companies will ensure you find the best rate available and potentially take advantage of any discounts a company may be offering.
Did you know as a member of WWFCU you could save on car insurance? Under the “Member Benefits” section of our website, follow the link to get a fast and free quote for car insurance through our partnership with TruStage Insurance powered by Liberty Mutual. Link is included here as well! TruStage auto insurance – compare and save today
If you’re a first-time borrower, you may not have the credit history needed to secure the loan approval on your own. This is where having a co-signer can come into play. A co-signer is often a family member or close individual whose credit history, income, and debt to income ratio are added to the loan application to help potentially secure an approval. A qualified co-signer generally has five or more years of good credit history, a secure source of income, and low debt of their own. They are also taking on equal responsibility for making sure the loan is repaid in full, and the loan gets reported to their credit as well. If you choose to add a co-signer, it’s a good idea to make sure the monthly payments are realistic and that you will have no trouble making them, especially on time!
Recap
There are many factors to consider when buying a vehicle. The staff at WWFCU is here to help you decide which finance options are best for you! We will work with you to get you into a car with a monthly payment you can afford, and we can help you achieve your financial goals, big and small!
News you can use
Be on the lookout for our latest auto loan promotion beginning December 1st to find out how you can get up to $300 cash back on an auto loan with WWFCU!!! And remember, WWFCU will not only match any competitor rate you’ve been approved for, but we will also BEAT that rate by 0.25%! So, make us your first choice for all your loan needs.
Sincerely,
Your Financial Gurus
