How to Buy Your First Car

CU1-Web_Home_Auto-Loans-2

What an exciting time! You’re in the market for your first car, which means newfound freedom to go places. You’ve likely set a budget and have some idea of what vehicle type you’d like – however, you may also need an auto loan to help make this dream happen. Don’t worry! Auto loans are pretty straightforward. Here’s what you need to know:

Interest rates matter

The higher your rate, the more your loan will cost in the long run. Check out what rate options are available to you, and pick the one that best matches the payment you can afford. APR = annual percentage rate; the lower this number, the better off you’ll be.

Consider the term

Low monthly payments are nice, but if you can afford to pay more each month, consider opting for a shorter loan term (such as 36 months instead of 60). With this option, you may earn a lower interest rate, plus your loan will cost less overall!

Need a co-signer?

If you don’t have much experience with credit (or if you’ve hit some credit potholes in the past), asking a parent or other adult to co-sign on your loan could be a huge help. With a co-signer, you could enjoy a lower interest rate because the financial institution will consider your loan more secure.

Active your eServices

At places like CU1, you may earn a lower interest rate on your auto loan by using eServices like DocuSign to close your loan. These services are convenient, free, and can help you manage your loan more quickly. What’s not to love?

Need help with an existing loan?

Refinancing is always an option if you’ve already bought your vehicle but are unhappy with the loan rate or arrangements you made elsewhere. We can look at your situation and help find ways to sweeten the deal.

Look at you! You have the knowledge and power to pick an outstanding auto loan, but don’t stop there! Applying for your loan before you start shopping lets you know exactly how much you can spend. Applying online is fast and easy – plus, it will open the doors to a loan expert who can help you through the rest of this process. Here are a few handy items to have on hand when you apply:

A government-issued ID such as your Driver’s License.
Pay statements from your most recent 30 days of employment. These must reflect your year-to-date income.
Proof of insurance. You’ll need to insure your new vehicle fully, so this is a valuable item to provide upfront. However, if you haven’t selected your purchase yet, don’t worry! We'll ask you to supply proof of insurance once your shopping is complete.

There you have it! Although buying your first vehicle can seem tricky, it’s pretty straightforward (and can even be fun). CU1 loan experts are always on hand to help with any additional questions. We can even help you choose the paint color if you’d like.

Happy car shopping!