The Car You Want at a Rate You Can Afford
Buying a vehicle, whether it’s new or used, is a big decision.
Other than buying a house, vehicles are the biggest purchases we make. You need financing you can afford – and we’re here to provide it.
Assessing a Comfortable Monthly Payment
If the monthly payment amount looks like it’s too much money to pay per month, consider a larger down payment or look for other vehicles with comparable features that are less expensive. The interest rate will have a lot to do with the cost of your monthly payment. You may be able to receive a lower monthly payment on a loan for a car if you have a lower interest rate and a higher down payment.
Add a Larger Down Payment
By paying as much as you can in cash upfront in a down payment, you are paying down the car’s principal amount before interest has a change to accrue. With a larger down payment, you will reduce the amount of money you’ll be charged interest for on a monthly basis, essentially saving money you would otherwise spend on interest, tied up on a 48- or 72-month car loan.
Allow the Car Loan Calculator to Guide You
Knowing your car loan budget before you get to the dealership saves you time and ensures a greater shopping experience for you. With your budget and price known beforehand, you will keep yourself from falling into certain pitfalls when you are at the dealership. By using a car loan calculator, you can enter in different amounts of the car’s total purchase prices to see what you can afford. You save yourself money by knowing ahead of time what you will pay for the car that you want.
Try an Auto Loan Pre-approval
Going into a car dealership prepared will help you navigate the purchase of the car, and help you know what your limits are in the face of enticing additional features and added warranties. You will have researched the price of the car you can afford and know what consequences in terms of high monthly payments if you go over your monthly car note budget.
If you really want to get ahead of the game, talk to your trusted PrimeWay financial advisor about getting pre-approved for an auto loan. The application process is simple and shows you so much information about how much car money you qualify to borrow, and at what interest rate.
Those two factors can greatly influence your decision making when it comes to buying a car – all before you’ve even set foot on a car lot. Also, if you’ve already been pre-approved for a loan, you might be less tempted to say yes to add-ons because you know how much you have to spend.
When it comes to buying a car at a dealership, you have everything to gain from getting prepared ahead of the sale.
Understanding Insurance & Additional Warranties
When it comes to choosing additional insurance on top of your car loan, be sure to understand what these forms of insurance actually cover, how that could benefit you, and if the car insurance provider on the vehicle already covers (at a better price) items the additional insurance says it covers. Here are a couple of forms of insurance to look out for that could save you money incase unplanned accidents or damage occur:
Gap insurance protects you financially when you owe money on a depreciated vehicle. It is needed if you would owe more on the car than the re-sale once you drive off the lot. For example, if you are still making payments on your car loan, and you get into an accident that totals out your car, Gap insurance could make up the difference of what you owe on your car note, based on the value of your car at the time of the accident.
Check out the value of your car for yourself by accessing the Member Auto Center at PrimeWay, or ask PrimeWay for more information.
Mechanical Breakdown insurance is an additional warranty that could cover mechanic services that are not covered by your manufacturer’s warranty. How do you know if you need Mechanical Breakdown insurance? It depends on how good your manufacturer’s warranty is and what it covers. Be sure to read your manufacturer’s warranty to see what the warranty covers.
From there, you’ll know what you might be missing that Mechanical Breakdown insurance could cover. Don’t wait too long to decide on signing up. Often, you are required to add this additional warranty before your manufacturer’s warranty expires. There are third-party warranties you can add on later. Whatever you do, read these warranties to ensure they meet your needs.
Going into a dealership knowing exactly what you want and what you can afford leaves little to haggle with. You’ll be equipped to make decisions based on your need, your future with your vehicle, and without adding on services or warranties, you don’t need that could make your monthly car note larger than it needs to be. Create a car purchasing process as stress-free as possible with help from the financial advisors at PrimeWay Credit Union.