Shopping for a vehicle can be exciting, but with different model years, dealer incentives, financing offers, and monthly payment options, it can also feel overwhelming. Before heading to the dealership, a little preparation can help you make a confident financial decision, and KH Credit Union is here to help.
Consider Model-Year-End Savings
When new model-year vehicles begin arriving on the dealership lot, dealers may offer incentives on outgoing models to make room on their lots. This can be a great opportunity to save, especially if having the newest model or latest features isn’t important to you.
However, keep in mind that older vehicle models are not automatically the better deal. Compare the purchase price, available incentives, features, warranty, and potential resale value before deciding.
Look Beyond the Monthly Payment
A lower monthly payment doesn’t always mean you’re getting the best deal. A longer loan term can reduce your payment while increasing the total amount of interest you pay over the life of the loan.
Before signing, make sure you understand:
- The vehicle’s total purchase price
- Your interest rate and loan term
- The total amount financed
- Any dealer add-ons or optional products
- The total cost of the loan
Get Financing Before You Shop
Talk with KH Credit Union before heading to the dealership lot! Getting pre-approved can help you establish a comfortable budget, understand the rate and payment you qualify for, and shop with more confidence. Dealership financing can be convenient and may occasionally include manufacturer’s incentives, but it’s important to compare the entire offer, not just the advertised rate or monthly payment. When you have financing options through KH Credit Union, you have something valuable when you walk into the dealership: the ability to compare your options before you commit.
Shop the Car and the Financing
Your next vehicle is a major purchase. Take your time, ask questions, and remember that the best deal isn’t necessarily the one with the lowest monthly payment, but the one that makes sense for your budget today and your financial goals tomorrow!
Before you head to the dealership, talk with KH Credit Union. Our team is here to help you understand your auto-loan options and make your next car-buying experience a little easier. Auto loan/Pre-approval applications can be found on our website; khcreditunion.com. You can also call or text us at 937-558-9070 for information!
