December 14, 2017 by Space Coast Credit Union
Have you ever gone car shopping and fallen in love with a certain vehicle, only to discover you couldn’t afford the payments? You then start looking at other vehicles but, after seeing your dream car, nothing else seems to measure up.
Fortunately, there is a better way: getting pre-approved for your auto loan before you go shopping so you shop within your budget. Armed with the knowledge of what you can afford and what a lender is willing to loan you, you can shop with more confidence and negotiate more effectively at the dealership.
When you get pre-approved, you can find out what your monthly payments will be for various loan amounts. If you have some flexibility in the amount of your down payment, you will have an even wider array of possibilities available to you.
For example, you may decide that you don’t mind buying a car that will take you to the top of your pre-approved payment range. You find the car you want, one that would reach the maximum payment in your range, but you wish you could add on some extra safety features. If you can provide a bigger down payment, you can move ahead, secure in the knowledge of what is affordable.
Focus on the Car Price, Not the Monthly Payment
Be careful. If you go into a dealership and say that you need to make a certain payment happen, they will want to sell the car and so will do their best to get you the car payment you want. But they will likely make it happen by offering a longer-term loan on the vehicle, which means you’ll pay more, both in principal and interest. You’ll want to focus on negotiating the price of the vehicle to get the best one possible. As the price goes down, so does what you’ll ultimately need to pay back on a loan.
When you walk into a dealership knowing what you can afford (rather than asking a salesperson to calculate payments), you can focus on choosing exactly the right car for your needs, confident that you know right where to go for financing: the place you got your auto loan pre-approval.
SCCU Auto Loan Pre-Approval Process
We provide pre-approvals in minutes. You benefit from low credit union rates, fast application and approval times, and more. You can find more information about pre-approved auto loans online
or you can call:
All Other Areas: 800-447-7228
Auto Loan Refinancing
Refinancing can often allow you to lower your payment, which boosts cash flow. And if you aren’t satisfied with the customer service you’re receiving with your current lender, it makes sense to refinance to have your car loan with a lender that treats you with the respect you deserve.
When you apply for auto loan refinancing at SCCU, there are no out-of-pocket costs and you can take advantage of an array of member benefits. Apply now