Buying a vehicle can be one of the biggest financial decisions we make as consumers. Some of the most common questions we get asked include: Should I buy a new or used vehicle? Do I need to get Pre-Approved? And what do I need to refinance my vehicle over to One Source FCU? That’s why our team created this useful guide to help you navigate through the exciting journey of purchasing a vehicle.
Used vs New Vehicle
When it comes to buying a new or used car, take a good look at how much you could save over time. Take a look at your budget, what you can afford monthly, what kind of a down payment can you make and always Pay Yourself First, for those “rainy days” like unexpected car repairs, etc. Below are some Pros and Cons regarding buying NEW or USED:
New Vehicle Pros: Might include manufacturer warranty, can have lower interest rates, manufacturer incentives, latest technology, and can have less repairs.
New Vehicle Cons: More expensive, lose money the instant you drive it off the dealership, higher depreciation rates, and higher car insurance rates.
Used Vehicle Pros: Less expensive, lower depreciation rates, lower car insurance rates, and not having to worry about keeping it in “mint” condition.
Used Vehicle Cons: Can require more repairs, can have higher interest rates, and the lack of the newest technology.
+ Pre-Approved Advantages
Getting Pre-Approved for your next vehicle loan through One Source Federal Credit Union has many advantages. Here are just a few:
Knowing How Much You Can Afford: Provides you peace of mind in knowing you are pre-approved and how much you can comfortably spend on a vehicle. One Source FCU can give you a solid estimate of what your rate, term, and monthly payment will look like.
Focus on the Car: Getting Pre-Approved can help reduce the stress associated with car buying and let you focus on the car itself. Researching safety, reliability and must have features can help you start narrowing the ideal car for your needs.
Bargaining Power: A Pre-Approval gives you greater bargaining power in getting the vehicle you want at a price you can afford. At times, this can encourage the dealer to find you other offers from multiple lenders and could end up saving you money by offering a lower interest rate.
+ Refinancing Tips
Are you interested in refinancing? Here are some common reasons why refinancing your existing loan might benefit you.
- You can refinance your existing auto loan to borrow additional funds if there’s enough equityin your vehicle
- Possibly get a lower interest rate
- Maybe you want to lower your current monthly payment and save some money
+ Life Stages when buying a vehicle
Life is full of wonderful journeys from starting your first job, to having children, to retirement. If your vehicle is no longer fitting your needs, here is some helpful information you might want to consider in selecting your next vehicle. Keep in mind all vehicles, regardless of your current life stage, should be safe, reliable and affordable.
New Family Member: Focus on life saving safety features, cargo space, easy car seat installation, and vehicle occupancy. Four door sedans and mid-size or larger SUVs are strong choices during this stage.
First Job/Teenager: Focus on advance safety features, strong fuel economy, low car insurance rates, vehicle’s affordability, and music streaming technology. Small sedans and hatchbacks are popular choices for this stage.
Retirement: Focus on the ease of entering and exiting the vehicle, easy to use technology, comfortable ride quality, quiet cabin, and good visibility. Small SUVs and small sedans are common choices in this stage.
+ Car Shopping Steps
Buying a vehicle can be full of excitement and perhaps a bit of stress too. Here are some helpful tips to help you before you decide on a vehicle.
- Know Your Needs and Wants: Safety, Technology, occupancy, vehicle size, engine performance, and vehicle purpose should all be considered.
- Know Your Budget: Most experts suggest spending at most 15% of your monthly budget on vehicle expenses which include maintenance, insurance, repairs, and gas. Used vehicles tend to be less expensive than new vehicle, researching both options is key.
- Check Rates and Get Pre-Approved: Visit One Source FCU’s website and review their loan rates, shop other local lenders to ensure you are getting the best deal and get a pre-approval from your preferred lender.
- Know Your Vehicle’s Trade In Value: Selling your existing vehicle on your own can make you more money but it takes time and hassle. Trading it in to the dealership can be quite convenient but rarely gets you as much money. Researching NADA and/or Kelley Blue Book can provide you valuable data about your vehicle’s worth.
- Review Contract Details and Sign: Pay close attention to all fees like application fees and dealer prep fees, ensure there’s no hidden items like a Warranty or GAP agreement, and once everything has been agreed sign at One Source FCU or dealership.
Get new car pricing and used book values.
Before you lease or financing a new or used vehicle, learn more about your options and what to expect at the dealership.
What happens if you're hit with unexpected expenses or you lose your job and can’t pay your car loan?
I just need enough cash to tide me over until payday.
