Dealer Specials

Getting the Right Payment

You know what car you want, but how do you know you’re making the right financing decision?

First

Understand your options. You can get financing through the manufacturer, a credit union or a bank. Rates change periodically and rates make all the difference. In general, credit unions can usually offer lower rates than banks because they are non-profit. That means they return all their profits to their members – not stockholders – so you benefit from lower rates on loans and higher rates on savings. When you join a credit union you’re a member for life, so you can start out with a great low rate for an auto loan and then open additional accounts to get higher rates on savings. Not a bad deal!

Second

Look at your budget. You probably have a house payment or rent to consider every month, not to mention groceries, household expenses, fun stuff like vacations and those pesky medical and credit card bills that tend to pile up.

Third

Check your credit score. You can get your free credit report every year from each of the three credit reporting agencies, Experian, Equifax and TransUnion. Your credit score is the first indicator of what sort of rate you can qualify for. When you’re negotiating the financing of your vehicle, ask your dealer what rate you qualify for based on your credit score. The higher your score, the lower the interest rate!

Fourth

To lease, or not lease? It depends on your personal choice. Do you want to own the vehicle after a few years of payments, or turn it in and get another make or model? Leasing is a great option if you want to get the latest and greatest car, but understand that it won’t be “yours” when the lease term is up. With a loan, you own the car when the loan term is up – but the payment may be too high for you to get the car you want. Learn more at Lease vs. Buy.