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Tips for Financing a Vehicle

You may think the process of obtaining car loans is less complicated than a home loan. The fact is you can run into many of the same problems with auto loans if you are not paying attention. Here are some tips for financing a vehicle you should consider before stepping foot in a dealership:

Check your credit report

Blog Tips for Financing a Vehicle

You are entitled to a free credit report annually. Before you start shopping for a car, get a copy of your report and scour it for errors. Any mistakes should be corrected before you start shopping for the best car loans to ensure you are eligible for the lowest possible interest rates.

Consider getting a preapproval

One of the best things you can do is get preapproved for your car loan before you start shopping. If you are uncertain about the preapproval process, contact Oklahoma Central Credit Union at 918-664-6000, select option 8, and ask about our auto loans preapproval program. You will have far more flexibility negotiating with a car dealer if you already know how much money you can borrow.

Shortest term you can afford

The term of an auto loan can vary from three years to six years. The shorter the term of your car loan, the less you will pay in interest, but the monthly payment will be higher. Consider taking money out of your savings account to put down a more substantial down payment on a car as well; this will help reduce the amount of money you need to borrow which means, in most cases, a lower interest rate.

Shopping around for the best rate

You can ensure you are getting the best possible rates by shopping around to see what is being offered. In some cases, dealership rates are slightly higher than what you would pay if you were working with a credit union or a local community bank. At Oklahoma Central Credit Union, we have agreements with numerous dealerships in the Tulsa area allowing consumers to apply for their auto loans directly from the dealer.

One of the most significant concerns every auto buyer has to worry about is accidents. Oklahoma Central Credit Union suggests every new car buyer consider GAP (Guaranteed Auto Protection) insurance as well as Vehicle Service Agreement and Credit Disability & Credit Life Insurance after you take out an auto loan. These optional coverages can help protect you and your family in the event you are involved in an accident or lose your job. The minimal costs associated with this coverage will give you peace of mind through the term of your auto loan.

Buying a new car should not be stressful. At Oklahoma Central Credit Union we have a number of programs designed to help our members purchase new or used vehicles and finance their purchase. Stop by any branch today and speak with a member service representative to discuss your options.

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