Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Dos And Don’ts Of Car Financing

28. December 2012 Administrator Car Loan (0)

Everyone dreams of owning a car that they can proudly say has been bought from their hard-earned money. But you might feel the burden on your pocket since the car prices are high and the economy hasn’t yet stabilized. However, high prices should not dissuade you from buying a car for yourself. A good knowledge about car financing can go a long way in helping you decide which car can be bought within your budget.

Read on to know what are the dos and don’ts of car financing.
Basically, car financing means getting a loan from a bank, a credit union or any other source in order to buy a car. This way you can easily buy a car that you desire. The problem of limited budget can also be resolved with car financing.

  1. Firstly, one must conduct a thorough research on the amount of money that needs to be borrowed. Prior research helps in determining whether a certain dealer is levying extra charges by means of additional costs and hidden interest rates. This groundwork needs to be done properly so that you get the best car financing deal.
  2. Compare and contrast the financing terms of the various auto loan options available. This comparison can be done online by making use of an auto loan calculator. Have concrete information about the current interest rates and get a number of loan options in hand so that you can take a print out and go to a dealership authoritatively.
  3. Never ever cross your budget limits. Always pre-decide on how much you can easily afford and then only go in for car financing. After all, it is you who has to return the money.
  4. You must have a complete look at the manufacturer’s website in order to know what all factory incentives are available. If a financing deal does not suit your budget requirements, don’t hesitate to decline the offer.
  5. Credit Unions offer one of the best car loan options. You need to become a member in order to be eligible for a credit union loan. The advantage here is that these unions are owned by their members and work on a no profit basis. They offer low interest rates and better financing terms. This in turn means your loan is going to be for a shorter period.
  6. There is no need to go in for financing options for add-ons, extended warranties and rust protection etc. Most of the new cars are available inclusive of all these additions.
  7. Don’t get attracted only to a specific model as the dealer might offer you a high price and high interest rate. Keep 2-3 options in mind before going in for car financing.

Keeping the above points in mind will definitely help you get the best car financing deal.

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GCTFCU Blog | Mistakes To Avoid When Applying For A Secured Auto Loan
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Mistakes To Avoid When Applying For A Secured Auto Loan

20. December 2014 Administrator Auto Loans (0)

Applying for a secured auto loan can be a very confusing and deliberating task for many people. There are a number of terms and conditions that must be properly understood before you sign a contract.

Given here are some of the mistakes that people usually make while applying for a secured auto loan in Killeen, TX.

  • Not knowing your credit rating: Before visiting your financier, you must know about where you stand in terms of credit rating. Contact a reliable institution to know your credit score and the ways in which it can be improved. Even a minor alteration in your credit score can make a lot of difference in your car loan and its interest rates.
  • Not understanding the loan terms before signing: This is the most common mistake that people make while applying for a secured car loan. It is very important that you carefully read and understand all the terms and conditions of the loan agreement. You should also ask questions and clear all your doubts concerning the agreement.
  • Exceeding your monthly budget: You should not commit the mistake of buying a loan amount that is higher than what you can afford to repay. You should determine your monthly expenses and decide on a budget to buy a car accordingly.
  • Not doing enough research: It is not recommended that you visit one lender and finalize the loan procedure. Instead you must thoroughly research the market about the prevailing interest rates on secured auto loans so that you can compare and decide the best deal for yourself.
  • Not taking the shortest-term loan: As the value of cars depreciate over time it is beneficial to pay off the loan as early as possible. Although short-term loans may initially seem to have higher payments but you would end up paying less interest.
  • Signing under pressure: Signing the loan contract under any sort of hurry or pressure is another common mistake. Once you have initiated negotiations with the financier you should take your time to evaluate the options and decide what suits you best.

    • For more information on secured auto loans in Killeen, TX, contact Greater Central Texas Federal Credit Union. You can call us at (254) 690 - 2274 or visit our office at 3305 E Elms Road Killeen, TX 76542.

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