The average new car loan hit a record high of $31,099 while used auto loan spiked to about $19,589, the CNBC reports. That means many Americans are borrowing money more than ever to buy used and new cars. Given the price of the loans, though, it’s clear that the income necessary to support the payments is higher than what employees earn on average.
If you find yourself in the same position, here are top tips to help you save on costs when you shop for auto loans in Kennewick.
Ditch the banks
Forget about banks. If you need financial services, check out credit unions in your area. These organizations offer lower and fewer fees so switching to a credit union can save you from never-ending charges that big banks pile on you.
Pick a good one
Don’t automatically go for the first credit union you find. Look for an organization with an upstanding reputation in the community like HAPO. Do you know the people running the organization? What kind of reputations do they have? If there are talks or reports that mention any bad publicity or money problems, look elsewhere.
Know your budget
Know how much you can afford before you shop for a car. That means fixing your financing before you check out product pages online or pay a visit to dealerships in your community.
Don’t overspend
Once you know how much you can spend, stick to it. Don’t go over your budget, thinking a few hundred dollars a month won’t be a bit much. Those dollars can easily add up to considerable costs, jacking up the price of your loan.
Fix your credit score
A good score can help you snag great interest rates when you reach out to your Kennewick-based credit union for auto loans. If you have plans to buy a car, work on getting your scores up.
