March and April are peak car-buying months.
Whether you are purchasing a new car or refinancing your current car, keep in mind strategies to save money and make the process as painless as possible.
Josh Davis, VP Indirect Consumer Lending at Mountain America Credit Union, joined us with some car-buying tips.
He says the smartest thing you can do is know how much vehicle you can afford. When you're on the lot and seeing all the different vehicles and options packages, it can be easy to fall in love with something that costs more than you were anticipating.
To help keep yourself from getting caught in that trap, get pre-approved for your auto loan through your credit union or bank.
With a pre-approval, you'll know what your maximum budget should be, how much your maximum payment will be, and what terms you're agreeing to before you even start walking the lot.
You'll also have better negotiating power at the dealership, and the buying process will be streamlined because the loan-approval process has already been taken care of.
Josh says auto loan rates have come down some, and you can sometimes find a really favorable special rate.
For example, Mountain America is offering auto loans at rates as low as 4.99% APR through the end of March. That's not only for new loans, but also for refinancing.
To see what auto rate you can qualify for and to start your pre-approval, go to macu.com/auto.
There, you can also schedule an appointment with a loan officer who can guide you through the process.
If you already have a low auto loan rate, you may actually benefit from refinancing.
Josh says depending on someone's overall debt picture, an auto refinance might actually save them money, even if the rate is slightly higher.
For instance, if you have some equity in your vehicle and you like your auto loan, but you've got some credit card debt at a higher interest rate, a refinance can help.
By rolling that credit card debt into a lower-interest auto loan, you may get a better "blended rate."
That's the overall interest rate you are paying on your combined debt across those different loans.
So even if you're paying more interest on your auto loan, overall you are going to pay less interest on the total debt.
Go to a Mountain America branch to ask for a comparison of your consolidation options.
You'll see whether a refinance is possible and if it would save you money.
Insured by NCUA
Advertised APR includes 0.25% loan rate discount with MyStyle® Checking. Actual APR based on creditworthiness.
Loans on approved credit. Membership required—based on eligibility.
This limited-time offer ends 3/31/26 and can change or be withdrawn at any time.
Terms, conditions and exclusions apply.
