A car is a necessity in today’s times, whether it is for commuting to the workplace, or going around with family and friends on a weekend. As far as the buying options are concerned, you can get a wide choice in form of new and used cars. Both of them come with their share of advantages and disadvantages.

The kind of car you ultimately buy will depend upon the budget you have. Read on to know about the pros and cons of a used and a new car, and then decide which one is a better fit to your needs.

• Buying a new car definitely has many benefits. Since a new car has not been on the road previously, it will be in a perfect condition, with no scratches on the surface or any other damages. The charm of a new car is definitely something to vouch for.
• With more stress being laid on safety these days, a new car will be equipped with the best of safety systems to ensure that the passengers are safe in situations such as an accident. In addition, new cars come equipped with the latest of gadgets. With a new car, you can also be sure about a highly fuel efficient engine as compared to the one in an old car.
• Financing is also easier when it comes to buying a new car. Lending institutions such as credit unions are more open to giving loans for new vehicles as these have more worth in the market. The higher value of a new car as compared to an old one can be attributed to the fact that it has not been hit by depreciation so far, which is not the case with an old car.
• Coming to used cars, they also offer many advantages. They are relatively low-priced, have low insurance rates, and less prone to be hit by significant depreciation after they have been used for about 2 to 5 years. A used car is also less susceptible to cosmetic damages. Not only this, one can buy a bigger car for the same price if he or she chooses to buy an old one; a new one will definitely mean more expenses.

Greater Central Texas Federal Credit Union offers auto loan at a cheap rates for new as well as used car. The decision to go in for a new or a used car lies totally with the buyer; assess your requirements and decide accordingly.

Various financial institutions offer car loans with different repayment options. However as a borrower, it is important that you understand your requirements and affordability to avoid any difficulties while repaying the loan amount. 
Here are some important tips that you must keep in mind while choosing a car loan:

• Determine your affordability: Undoubtedly, this is the most important per-requisite of applying for a car loan. It is very important to establish your budget for the loan amount to ensure you can pay it off easily. Therefore, determine all our monthly expenses and determine the amount that you would be able to spare monthly. Some people may have the misconception that making large repayments is a good way to pay the loan off early. However, this extra expenditure every month cost can also cause you to financially struggle for your basic needs.
• Know your budget: After you have set aside the amount that you can afford, you must work upon how you will manage your expenses. If you do not have a steady income, you should opt for a loan that offers flexible repayment options. Make sure that you chalk out a budget that seems practical and realistic.
• Determine your chances of approval: Most financial institutions have a specified set of criterion to decide on if an applicant’s loan should be approved or not. You should consider your credit history, annual income and other relevant factors to determine the approximate loan amount that you can be lent.
• Secured or unsecured loan: A secured loan would need you to put up collateral against the money borrowed. In case you fail to pay the loan back, the collateral will be possessed by the lender. Unsecured loans, on the other hand, will possibly have higher interest rates due to no such security. You should be aware of the stakes and take a well informed decision.
• Interest rates: You must also decide between fixed and variable interest rates. Fixed rates would help you have a clear idea of your monthly repayments, and therefore, manage your budget accordingly. Variable rates however are subject to change according to the present market conditions but can offer benefits too.

We at Greater Central Texas Federal Credit Union offer convenient and instant car loans at affordable rates of interest. For more details, feel free to call us at (254) 690 - 2274 or visit our office at 3305 E Elms Road Killeen, TX 76542.