As summer begins winding down, we're heading into one of the best times of year for people shopping for a new or used vehicle.
Kara Loftus, Mountain America Credit Union VP Member Services, joined us to share tips for getting the right vehicle at the right price.
She says even 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 preapproved. That way you know the maximum price range you should be looking at rather than falling in love with something that you may not be able to purchase.
In addition, 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.
Kara says 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.
An auto loan is often one of the highest monthly payments someone may have. But, Kara says there are a few things to consider when you're just looking at the 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." To protect yourself from that, you can purchase gap coverage for the difference between what the vehicle is worth and what you owe if it's in an accident.
But really the best thing to do is to get a loan with a lower interest rate. Through August, Mountain America is offering a special auto loan rate as low as 4.99%.
That includes a 0.25% rate discount for Mountain America members who have a MyStyle Checking account and get a new auto loan. That could save hundreds of dollars over the life of the loan.
If you'd like to learn more, visit one of Mountain America's more than 100 branches or go to macu.com.
