Buying a car is a substantial investment and one which ought to be given due consideration. At First Regional Co-operative Credit Union, we will not only provide financing at an affordable rate but will also guide you through the process.
Below are some tips to consider when purchasing a car.
- Save for your Down Payment, Share Requirement and other Associated Fees
Many of us chose to finance the purchase of our vehicles by way of a Motor Vehicle loan. If this is your plan, most car dealerships will require a down payment while your loan application is being processed.
Most lending institutions will require that you deposit a certain amount of money to your account to serve as added collateral for your loan. At First Regional, this is called your Share Requirement. You should bear in mind that you will also be charged a processing fee by the lending institution and will be required to licence and comprehensively insure your vehicle.
- Get Preapproved for a Motor Vehicle Loan
If you are considering financing the purchase of a vehicle by way of a Motor Vehicle Loan, we would recommend that you get preapproved. Preapproval will help you to determine how much you will be able to borrow to purchase your vehicle, monthly loan payment, interest rate etc. This information will help you to plan your budget and will give you greater negotiating power when dealing with the car dealership.
First Regional’s preapproval process is quite simple and only takes a few minutes. Just call one of our “Phone A Loan” representatives at 876-707-2038/2048/2058 or visit one of our branches and speak to a Member Service Representative. You will be required to provide some personal information as well as information concerning your employment, credit history and finances.
- Wants and Needs
It is recommended that you make a list of your needs such as engine and performance features, safety features (air bags, traction control, lane departure warning, back up camera etc.), seating, storage and cargo carrying capacity etc. For example, if you have a large family and will be transporting the children to and from school or will be going on regular family outings, a seven-seater may be a way better choice than a two-door sports car.
You should also make a list of your wants such as infotainment (USB, WIFI, touch screen etc), comfort and convenience (cruise control, power seats, outlets for cell phone charging) etc.
- Affordability
It is important that you select a car that is budget friendly. You may not be able to buy a car in cash and so securing a First Regional Motor Vehicle Loan may be your best option. You should determine how much you can afford to pay towards your car loan on a monthly basis. Please bear in mind that after making your monthly payments, you should be left with enough money to comfortably sustain you and your family.
- Fuel Efficiency
Will you be travelling long distances often? Buying a fuel efficient vehicle will help to significantly reduce fuel expenses.
- Age of the Vehicle
First Regional Co-operative Credit Union does not finance vehicles that are older than seven (7) years. Although older cars are generally less expenses, they tend to require frequent repairs and they have a shorter time span compared to a newer vehicle.
- Insurance
The law requires that your vehicle be insured and First Regional requires comprehensive insurance. You will need to shop around to find the insurance company that will provide a good comprehensive insurance policy at an affordable rate.
- New or Used Vehicle
Many persons are not able to afford a brand new vehicle and, therefore, may opt to purchase a used vehicle. If you decide to purchase a used vehicle, make sure that it is in an excellent condition. Bring along a trusted mechanic to inspect the vehicle and ask questions about the vehicle’s history. You should inspect the vehicle’s safety and durability features.
If you are going to finance the purchase through First Regional, you will be required to provide a up-to-date Valuation Report.
- Think of its Resale Value
Most people do not intend to keep their vehicles forever and, therefore, will seek to resell their vehicles. You may wish to purchase a vehicle that will fetch a decent price when you decide to resell it.
- Test Drive
It is important that you not only examine the interior and exterior of the vehicle but also test drive the vehicle. You need to know whether you feel comfortable when you drive it – is there enough leg room? Is the seat too high?
- Research the Car Dealership
Research the car dealership you will be using. Before you enter into any contract or agreement, you must know whether they operate in an upright, dignified and professional manner.
Now that you have taken some of these tips into consideration and have bought your dream car, go ahead and hit the open road. Go on that big road trip you always wanted to take. You will feel even better knowing that you got a good deal and a great rate when you financed it with First Regional.
