3 Free Online Resources for Car Buying
According to a recent survey, the top five activities conducted online by future car shoppers include: researching car prices, finding actual cars listed for sale, comparing different models, finding out what their current car is worth, and locating dealerships.
Researching for the best car for the best price is important, but what about the auto loan process? Between knowing your credit score and getting comfortable with the auto loan estimated interest rate, there are additional numbers that could benefit you in the long run when shopping for your next vehicle.
Check out these free, online auto loan related resources:
1. A Step-by-Step Module About Understanding Auto Loans
It’s always good to give yourself a refresher course on all things that are involved with an auto loans. This free module covers::
Different ways to buy a car.
The difference between direct financing and dealer financing.
How your interest rate affects the term of your loan.
The fine print to look for when agreeing to a monthly payment.
Here’s a look at what some of the module looks like:
2. Try a Car Buying Calculator
A Car Buying Calculator can take a lot of the guesswork out of the negotiations and give you peace of mind when committing to a final price.
Some financial pieces that go into a Car Buying Calculator:
Highest monthly payment you can afford: This part comes from your budget and how you choose to adjust your monthly fixed expenses.
Down payment: It’s okay if you don’t have a down payment to buy a car, but it helps bring down the upfront cost of the car and can lower your monthly payments and/or shorten the loan term.
Trade-in value (if any): If you have another vehicle that you would like to trade-in, you can check to see the estimated value of it on a trusted resource. One you can use is Kelly Blue Book’s ‘What’s My Car Value’.
Loan term: This can be broken down in years or months (though most places you talk to about loan terms will speak about the term in months). Most loan terms can be anywhere from 24 months (2 years) to 72 months (5 years).
Interest rate: Part of this depends on what the rates are in the market during the time you are looking to buy a car, and the other part is dependent on your credit score.
3. Learn How Lenders Use Your Credit Score
Our partners at GreenPath Financial Wellness can help with defining how lenders utilize your credit score and why it’s important to have a steady credit score.
A credit report will have detailed information on your credit history. Having a good credit score can be a useful negotiation tool when deciding certain factors of your auto loan, such as the interest rate.
Before pursuing an auto loan, it may be time to check your credit score. In order to find out the exact details of your credit score, you can run a free credit report.
Together Credit Union has your back.
Whether it’s sitting down with a personal service counselor to discuss your current financial situation or applying for an auto loan with some of the best rates available, your credit union is here to help. Questions about the auto loan process? Call our Member Contact Center at 1-877-325-2848 or send us an email through our contact form.
