We all would love a shiny new vehicle, but we also know that it’s a big purchase. As an adult we’re not allowed to be impulsive because it comes back to bite us pretty quickly. If you’re thinking of making a big purchase like a new car, read on and make sure you’re fully prepared and ready for all the expenses and responsibility of a new car. Below we’ve listed four things to consider before purchasing a car.
Auto loans
When it comes to buying a car, getting an auto loan is usually part of it. Make sure that you research and fully understand the terms of the auto loan you are considering. Things that can affect the monthly payment and total cost of the loan are your down payment and the repayment term of the loan. Be sure to ask questions and visit your local credit union before making any auto loan decisions.
Buy or Lease
Do you understand the pros and cons of buying or leasing a car? Surprisingly, not many do. Leasing is a bit like renting, but the money you’re spending each month can potentially go towards purchasing the vehicle at the end of your lease.
Leasing a car is popular for those who like newer vehicles and don’t have a car to trade in. It also appeals to those who drive less as there is typically a mileage cap.
The benefit of buying is that typically; it is economically sound as compared to leasing. This is because you’re paying down a set cost of the vehicle and likely will have provided a large down payment initially. Do your research and consider all the pros and cons so you know you’re making the best decision for you.
New or Used
In a lot of cases, leased cars are new but you can lease a certified pre-owned vehicle. These vehicles usually have low mileage and can be purchased at the end of the lease. If you are considering buying or leasing a used car, the first rule is to test drive it thoroughly. Test how the car drives in different areas like residential streets and highways. This will give you a grasp of the state of the vehicle. As always, research the vehicle and review the vehicle history report.
Other Car Costs
It’s easy to be dazzled by the idea of a new car and forget all of the other costs that come along with it. When you’re in the market for a new car, make a budget and add in the yearly, semi-yearly and monthly costs of owning a vehicle. These costs include things like: maintenance, emergency, license and tags and fuel. Consider as well how many miles you will put on the vehicle, this will affect fuel costs and long term reselling potential.
If you have additional questions about purchasing a vehicle, please feel free to call us at 800-835-3400 or stop by a branch to talk to a Member Advisor. You can also find more information on the auto loans page on our website.