Tips for buying a vehicle | blog.firstffcu.com

Buying a car is a big ticket purchase that shouldn’t be done without careful planning. It’s important to do your research and make an informed decision about the best possible vehicle purchase for you. Keep reading for ways to prepare before you buy your next ride.

Decide What You Need: Aside from your vehicle being able to get you to and from work, around town, or for after school pick-ups – think about what else you might use your car for. Do you have kids and need extra room and/or trunk space? If so, you might consider a larger vehicle like an SUV or mini van. Do you go on many long road trips, or is most of your driving done locally? All of these are important factors in determining the type of vehicle that would best suit you.

Figure Out What’s Realistic: Sure, maybe you’ve always wanted a luxury vehicle or a sports car – but practically speaking, will either of these fit your lifestyle and budget? You want to make sure you’re driving a car that fits into your monthly budget as well as with how you live and where you typically go.

Know Your Credit Score: The better your credit, the better your loan rate. Take advantage of viewing your free annual credit report before you visit the car dealership, and get a ballpark of what it might be (and also check for any errors on your credit report at the same time). If your credit score is low, you’ll most likely have a higher loan rate and have higher monthly payments throughout the life of your loan. Review how to boost your credit score in one of our previous blogs.

Have a Set Budget: Know what you can afford to spend monthly on a car payment and be ready to stand firm with that number once you walk into the car dealership. Auto loan payment calculators (like the ones on our website), are a great resource in helping you to determine what your monthly payments and the best loan term for you might be.

Search for Deals: Decide on a good time of year to buy your vehicle and see what types of sales and incentives might be out there. For example, toward the end of the summer into early autumn you might find many dealer clearance events as car dealerships try to sell the current year’s inventory before the new year’s inventory comes in. Long holiday weekends like Presidents’ Day and similar are also good times to search for vehicle sales at the dealership. If you’re local to Monmouth & Ocean Counties – be sure to check out our preferred dealers for your next car, and finance your auto loan through us!*

Do Your Research: Investigate the reputation and reliability of the vehicle you’re looking to buy. You’ll also want to thoroughly explore safety ratings, fuel economy, and whether it’s better to buy the car new or pre-owned. Certified pre-owned vehicles are typically only a couple years old with relatively low mileage, usually coming off a previous lease. These vehicles make for a great option because they come at a lower price, but still include dealer perks and warranties.

Also keep in mind, if you do decide to go with a used car – there are certain significant used vehicle maintenance items you’ll want to consider before purchasing:

Tires – Tires on a pre-owned vehicle should be inspected for wear and tear. A trick to check the state of the tires is to insert a penny into the groove with Abraham Lincoln’s head upside down. If the top of the head is visible, the tires need to be replaced. Should the tires soon need to be replaced, you’ll want to budget for anywhere between $150 to $200 per new tire.
Brakes – Most brake pads will last roughly 35,000 miles. If brake pads do need to be replaced factor in $150-$250 per axle, and even more if the car’s rotors need to be replaced as well.
Transmission Service – This item is more applicable to higher mileage vehicles that are above 120,000 miles. Check the manufacturer’s recommendation as well as the maintenance history of the vehicle. Transmission service at a typical quick lube place starts at around $79.99 and increases based on how much transmission fluid is needed.
Engine Coolant Flush – Many vehicles don’t recommend an engine coolant flush for 10 years or over 100,000 miles. Check the owner’s manual for the manufacturer’s suggestion. This is also applicable to a higher mileage used car, and will cost you around $100 if you do need this service.

If you’re in the market for a new or new-to-you ride, stop into any of our local branches or give us a call. You can also apply for an auto loan online 24/7. At First Financial, our auto loan rates are the same whether you plan to buy new or used, and we also have same-day approval decisions.* We’re happy to help you with any questions you might have about the car buying process!

*A $5 deposit in a base savings account is required for credit union membership before opening any account/loan. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information. APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties.

If you’re thinking about buying a new car and don’t know where to start, you’re not alone. Purchasing a new vehicle is one of the bigger purchases you’ll make in life, so there’s quite a bit to consider. From leasing a brand-new vehicle to buying used, there are so many options out there that fit all different types of budgets.

Between higher prices and lower product availability, the car market itself is more challenging to navigate these days. According to the New Jersey Coalition of Automotive Retailers, most dealers only have 10% to 15% of their total inventory. This is why planning ahead is a key way to get the vehicle you’re looking for at a realistic price.

Here are our top tips for making car shopping more affordable.

Build up your savings

If you don’t already have a savings account dedicated to big purchases like a new vehicle, now’s the time to start! Having money in the bank to buy a car minimizes the amount you have to borrow, which can potentially save you thousands in interest down the line. Make it easier on yourself by setting up automatic deposits into your savings, so you don’t even have to think about it.

If you want to open a savings account for your next car purchase, we’re here to help!* Contact us or stop by your local branch to speak with a representative.

Figure out your down payment

Based on your current income and expenses, you’ll want to calculate the target amount to spend on a down payment and make sure it’s realistic for you. Ideally, you should be putting 20% down on a new vehicle and 10% down on a used vehicle. The more money you put down, the better deal you’ll get. It will not only help you qualify for a loan, but it will also make for a more affordable monthly payment.

Check out our handy auto and loan payment calculators on our website, to help provide you with realistic numbers.

Research and compare prices

Before you head to a dealership, you’ll want to do some research on your own. The more you know about the market value of the vehicle you want, the better deal you’ll get. The best way to do this is to identify the type of car you’re looking for and research the Kelley Blue Book price for each make and model.

Did you know we partner with local dealers to get our members a great rate on their next car? If you finance with us and purchase a vehicle from one of our preferred auto dealers, a great offer will be waiting for you!

Sell or trade your current vehicle

If you’re replacing your current car, you can sell it or trade it in at the dealership. The money you’ve made can be put toward your next car’s down payment. We recommend using appraisal tools to help estimate your car’s value so you know how much you should receive for the vehicle.

Always negotiate

Negotiating is common when making a big purchase like a vehicle. Don’t be afraid to negotiate the price of the car, especially if you’ve found it at a lower price elsewhere or there are minor flaws.

Consider your loan options

At First Financial, we offer personalized auto loans for new or used vehicles with low rates and same day approval decisions.** If you think you’ve spent too much at the dealership, you can also check out our auto loan refinance options or fill out our quick online form to see if we can help you save some money on your monthly payments. Contact us to get started, or stop by your local branch to speak with a representative today!

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

**APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.