How to Save Money When Buying and Financing a Car
Updated: Sep 10, 2020
Are you in the market for a new vehicle? Maybe your family is growing, and you need a bigger SUV to fit that extra car seat. Or perhaps lately, you feel like the auto shop is your second home, and it’s time to finally trade in that once-trusty sedan. Either way now is a great time to buy a car. Here are a few tips to help you save money during the car buying process:
1. Timing Is Everything
September is a great time to start looking for a new vehicle. 2021 models are filling the lots which means older models will be discounted. And since the economy is still on the rebound, there are great deals to be had (low-interest rates, cash-back incentives, lengthened loan terms, etc.)
The rental car industry has been hit particularly hard during the pandemic. As a result, giants in the industry have been forced to offload a good chunk of their fleet. How is this different than buying a used car at a traditional dealership? You can enjoy deeper discounts, “no-haggle” pricing, and even extended “test drive” periods where you can take the car home for several days to ensure that it fits your family’s needs. Just be sure to do your due diligence: ask for an accident report, explore warranty options and have the vehicle inspected by a neutral third-party before purchasing.
3. Compare Interest Rates
Interest rates are low, low, low. Starting with your local credit union, compare car loans from multiple lenders to find your best rate. The lower the rate, the more money you will save over the life of your loan. The rate you receive will depend on your credit score, loan amount, down payment and the length of the loan. The entire process is very straightforward and can be completed entirely online.
Maybe you’re not in the market for a new vehicle, but you’re interested in lowering your monthly payment. Now may be the right time to refinance. Here are a few good reasons why. First, as indicated above, interest rates are very low. There’s a good chance that now you may qualify for a better APR. A small change in rate can actually save you a lot of money in interest over time. Also, if your credit score has improved since you took out your auto loan, you may now qualify for a better refinancing deal.
Select FCU offers a number of services to assist you with buying and financing a car buying. To learn more, call us at 210-223-6561.