As summer winds down, we're heading into one of the best times of year for people shopping for a new or used vehicle.
Jeannine Lynch, VP of Consumer Lending at Mountain America Credit Union, joined us to share tips for getting the right vehicle at the best price.
She says before you start researching vehicles or even test driving some, make sure you understand your price range so you can focus on the ones that match your needs and your budget.
For instance, if you plan to trade in or sell your current vehicle, how much is that worth?
Putting that value toward your new vehicle can significantly change how much your loan payments might be compared to paying full price.
You also can speak with a loan officer to get pre-approved. That way you know the maximum price range you should be looking at rather than fall in love with something that you may not be able to purchase.
There are other ways that a pre-approval process might be helpful as well. The loan officer might be able to help you consolidate or transfer existing debt, which could save you money on more than just an auto loan.
It also gives you more of an advantage when shopping for a vehicle because you and the salesperson know there isn't a question as to whether you will qualify for a loan.
There are a few things to consider when you're just looking at monthly payment.
Loans with a longer term are becoming more popular because they bring down the payment and stretch it out over more years.
The value of a vehicle depreciates fairly quickly after purchase, so it's important to protect yourself from ending up with a vehicle that's worth less than what you owe on it.
This is often referred to as being "underwater." You can purchase gap coverage for the difference between what the vehicle is worth and what you owe if it's in an accident, for example.
Through August, Mountain America is offering a special auto loan rate as low as 5.49%.
If you're not in the market quite that soon but still want to save, Mountain America members who have a MyStyle Checking account get a .25% rate discount on a new auto loan.
That can easily save hundreds of dollars over the life of the loan.
And if you want that discount but don't have a MyStyle Checking account, viewers today can open an account using the promo code EDUCATION25 to get a $150 bonus for opening an account in any Mountain America branch or online at macu.com/education25.
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