Factors to Consider When Car Shopping

Are you thinking about purchasing a new or used car this year? Before you purchase, you need to consider many factors. One of the most important factors is financing. Auto finance requires knowledge of money, budgets, and even long-term planning. Nearly everyone can afford to finance the purchase of a car, but not everyone can finance the purchase of the same car. Therefore, be aware of your constraints and requirements before you begin the process of auto financing.

Here are three easy steps that will help you with your next auto financing need:

1. Know your financial limits.  It is essential that you are aware of your financial limits and constraints when you go in to finance the purchase of a car.  Work out a budget for what you can actually pay for a car before you even start looking.  You also will have to decide whether or not to make a down payment on the vehicle.  Additionally, your financial obligation will continue for several years after you buy a car. Do you have the income to support a sizeable loan?

2. Pick your car.  Make a list of all of the essential things that you will need from your new car, such as reliability, size, gas mileage and low maintenance costs. From there, look for cars that match your budget and your needs.

3. Research loans.  Every lender will offer you a different rate, loan amount, and terms of the loan.  You should research rates for the car you are interested in buying before you go to the dealership so that you have an idea of what to expect.  Don’t be afraid to compare rates and terms from different lenders.

San Diego County Credit Union offers a free auto buying service to help you select and finance a new or used vehicle.  For more information visit sdccu.com, call us toll-free at (877) 732-2848, or talk to a financial services representative at any one of our 28 branch locations.