When shopping for a new car, it’s easy to let your emotions drive you. After all, you’ve been fantasizing about that red convertible for how long? For most people, a car is the most expensive purchase they’ll make aside from their house. So, keeping this sobering thought in mind is a solid step toward reining in those emotions.
Common sense dictates that you’ll want the lowest interest rate possible, regardless of whether you’re buying a new or used car. After all, the ultimate goal should be to pay off your car with the least amount of money in the least amount of time. Obtaining a great low interest-rate loan starts way before you hit the showroom. It begins with an assessment of both your financial situation and what you really need in a car.
The first thing to do is visit or call your local IMCU branch manager. They can review your credit report and get you pre-approved, so you know what you can afford. You’ll want to have a good idea of where you stand prior to going to the dealer. By getting pre-approved, you’ll also be able to determine whether to take the dealer incentives and finance with IMCU, rather than taking the dealer’s 0% financing. Your IMCU branch manager can do the comparison for you and help you come to a conclusion that will best suit your needs.
Next, it’s important to figure out what you can afford before shopping around. A good rule to follow is to finance no more than 80 percent of the price of the car. If you finance more than 80 percent, you may find yourself owing more on the auto loan than you could get by selling the car or trading it in.
You’re ready to start shopping for your car once you’ve determined how much you can spend on it and how much of a down payment you can make.
Using your head first, instead of letting your emotions lead you, may not put you in that red convertible you’ve been dreaming of now, but the financial payoff from saving money might get you there a little later.
If you’d like assistance in working with the dealer, take advantage of IMCU’s no-cost Auto Advisor Program. With this program, you’ll have someone to assist you every step of the way, from helping you locate the vehicle you are searching for to assisting in getting a great price. Don’t forget, IMCU also offers extended warranties and GAP coverage, which cost less and offers similar coverage.
To inquire about how we can put you in the driver’s seat for less, stop in or call your nearest IMCU branch today or visit imcu.com and apply online!