The first time you shop for an auto

The first time you shop for an auto loan can be time-consuming and a little confusing. But, once you know these car-buying basics, you’ll save money on financing your first car or your 10th:

1. Evaluate your financial situation. If your credit history is spotty, clean it up for at least six months before applying for a loan.

2. Compare annual percentage rates (APRs). Some lenders will give you a rate break if you automate payments from your checking account.

3. Consider buying used. The average cost of a used car is less than half of a new one.

4. Get insurance quotes. Most lenders require collision and comprehensive insurance on new and used vehicles.

5. Realize the less you borrow, the more you save in loan interest.

6. Pay off the loan as quickly as possible and you could save hundreds of dollars in interest charges.

7. Ask a Hopewell Federal Credit Union loan officer to preapprove your loan so you can bargain for a dealer discount based on a cash sale.

8. Understand the loan contract. A loan officer can help you evaluate a loan agreement.

9. Make purchasing the vehicle, financing the vehicle, and trading the vehicle three separate transactions.

Call Hopewell Federal Credit Union today at 740.522.8311 for all of your vehicle loan needs.



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