What to Know Before Purchasing a New Vehicle

There’s more to purchasing a vehicle than selecting paint colors and interior fabrics. Before applying for an auto loan and buying a car, there are several factors to consider to help set you up for success.

1. Do Your Research.

• Have an idea of what you are shopping for. Considering important elements like new or used vehicles, body style and size, fuel efficiency, technology, and safety features before you visit the dealer can save you time.
• Be sure to investigate consumer reviews, safety ratings, warranty coverage, and resale value. 
• If shopping for a used vehicle, request official reporting that checks for accidents, title issues, or odometer fraud, and consider getting a third-party mechanical inspection. 
• If you’re planning to trade in a car, know its value to ensure you get a fair offer. 

2. Know Your Budget.

• As a good rule of thumb, you want to try to keep your car payment under 15% of your monthly take-home pay.
• Will you be making a down payment? The more you put down, the less you will finance, and the lower your monthly payments will be.
• When considering your budget, don’t forget to factor in taxes, title and registration fees, and insurance in the total cost.

3. Understand Loan Options and Know Your Credit Score.

• When comparing loan options, look at the APR (Annual Percentage Rate) and loan term. A lower APR can help save money over time, but a longer loan term typically offers lower monthly payments.
• Knowing your credit score can help give you an idea of what type of loan you may qualify for. A higher credit score can help you qualify for lower interest rates. 
• Consider getting pre-qualified for your loan, which can offer several benefits when shopping for a new vehicle. Pre-qualification can help you understand how much you can afford, give you stronger negotiation power, speed up the process at the dealership, and so much more.

After you’ve done your research and are ready to buy that car you’ve been eyeing, ECU is here to help with an auto loan that fits your needs. With our competitive rates, easy process, and selection of financing options, you’ll be behind the wheel in no time!