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Financial Guidance Library

Helping others achieve financial success

Financial Guidance Library

Car Loans: 3 tips you should know

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Buying a car can be expensive. That’s why most people get a car loan when they’re ready for
a new ride. Before you sign on the dotted line, keep these three tips in mind:

1. Start saving money as soon as possible. You may not be able to save enough to buy the entire
car by yourself, but you can use this money as a down payment. The more money you pay up front, the less money you need to borrow. This means a lower payment each month.

2. Choose a short loan term if possible.The term is basically how many months it will take you to pay off your loan. A 36-month loan may have higher monthly payments than a 48-month loan, but you’ll pay less money over the long term.

3. Use rebates if available. If there’s a cash-back rebate option on your car, take the rebate and
finance the car with your credit union. Use the extra money as part of your down payment. It’s a great way to get free money and lower your monthly payments.