Before You Fall in Love with the Car, Know the Numbers

Maybe your current vehicle is showing its age, your commute has changed, or you’re ready for something different. Whatever brings you to the car lot, a little preparation can help you choose a vehicle—and a loan—that fits your life.

Before you picture that new ride in your driveway, take a look at the numbers.

Start with a budget you can comfortably afford

The monthly payment is only part of the cost of owning a vehicle. Insurance, fuel, maintenance, registration and repairs all need a place in your budget, too.

Before shopping, decide what you can comfortably spend while still covering everyday expenses and setting money aside for unexpected costs. Getting an insurance quote on a vehicle you’re considering can help you avoid a surprise after you buy.

Talk financing before you hit the dealership

Contact EFCU early to discuss your financing options and ask about preapproval. Knowing your potential loan amount, rate and term can give you a clearer budget and a useful point of comparison when reviewing dealership financing.

It also gives you time to ask questions before you’re sitting at a desk with paperwork in front of you.

Look beyond the monthly payment

A payment that fits your budget matters, but so does how long you’ll be making it.

A longer loan term may lower your monthly payment while increasing the total interest you pay. It can also leave you owing more than the vehicle is worth for longer.

When comparing offers, look at the annual percentage rate (APR), number of payments, amount financed and total cost—not just the payment quoted by the salesperson.

Know what’s included in the price

Ask for a written, itemized “out-the-door” price that includes the vehicle, taxes and fees. Then review any additional products separately.

You may be offered a service contract, GAP coverage or other extras. Some may fit your needs, but each comes with a cost. Ask what the product covers, what it excludes, whether it’s optional and whether its price will be added to your loan. Financing an add-on means paying interest on that amount, too.

Take time to understand what you’re buying before agreeing to it.

Give a used vehicle a closer look

A used vehicle can be a good fit, but its condition matters as much as its appearance.

Review the vehicle history, ask for available maintenance records and consider having an independent mechanic inspect it before you buy. A history report can provide helpful information, but it won’t tell you everything about the vehicle’s current condition.

During the test drive, pay attention to unusual noises, warning lights and how the vehicle handles.

Review the final numbers before signing

Before signing, make sure the purchase price, trade-in amount, down payment, financing terms and any extras match what you agreed to.

If you still owe money on your trade-in, ask how that balance will be handled. Any unpaid amount added to your new loan increases what you’re borrowing.

If something is unclear or different from what you expected, pause and ask. You should feel comfortable with both the vehicle and the agreement.

Let EFCU help you get ready

Buying a car is a big decision. Having a budget and understanding your financing options can make the process feel more manageable.

Before you head to the dealership, talk with Electrical Federal Credit Union. We’ll help you understand your financing options so you can shop with confidence—and choose a payment that leaves room for the rest of your life.

Already financed at the dealership? You still have options.

If you feel pressured to use dealership financing, take your time and review the terms before signing. Financing through the dealer doesn’t mean you’ve missed your opportunity to work with EFCU.

EFCU offers lower rates for eligible auto refinances than for vehicle purchases. Once your vehicle registration is complete, you can apply to refinance your loan with us. Contact EFCU before purchasing to discuss eligibility and the steps involved.

Refinancing is subject to credit approval and vehicle eligibility. Your rate and potential savings will depend on your qualifications and existing loan terms.