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

Buying A Car- Should You Buy New Or Used?

21. May 2013 Administrator (0)

One of the most perplexing decisions that any car buyer is faced with at the beginning of his purchase, is whether to opt for a new car or a used one. While some people are very sure about which way they want to go, the following compilation of the pros of going either side should help the rest of you decide-

Pros of buying a new car-

  • One of the major advantages of buying a new car is that you can get exactly what you want, custom-made to meet your needs. This saves a lot of time, along with ensuring optimal satisfaction for you as a buyer.
  • Another obvious advantage is that you do not have to worry about where the car you are driving has been, or who owned it before you did. You are the first driver, and you decide how you wish to keep it.
  • The warranty that you get with a new car is also an advantage, since it comes with the car and you do not have to pay extra for it.
  • Chances of getting better financing rates with a new car are high, since the car has not yet depreciated, and hence inherently costs more.
  • A new car is likely to be equipped with the latest gizmos, safety measures, and mechanical advances. This means better efficiency, increased safety, lower emissions, and a generally more pleasant driving experience.

Pros of buying used-

  • The biggest advantage of choosing to buy a used car is the cost saving involved. Not only is the overall price of the car a lot lower than its new counterpart, but you can also easily get a cheap auto loan on a used car
  • A used car also offers the advantage of undergoing minimal depreciation. While this might sound counterintuitive, it is true, since all cars undergo maximum depreciation in the first few years, losing as high as 40% of their value in the first year. 
  • Chances of getting low insurance rates on used cars are high. All that you need to do is shop around and stay away from insurance sticker shock. 
  • Used cars offer a wider range of financing options, and with some amount of research, you should be able to get a great deal on the lowest used car loan in your area. 
  • Finally, choosing to buy a used car increases the options that fall within your budget greatly, making it possible to consider buying a dream car that you otherwise wouldn’t have been able to afford.
GCTFCU Blog | Tips When Applying For A Home Loan In Killeen
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Tips When Applying For A Home Loan In Killeen

20. January 2016 Administrator Home Loans (0)
When buying a house in Killeen, TX, make sure you have also done enough homework on the long term liability that it entails. There are some important things to keep in mind so that the process is smooth and you can buy your dream home without any financial constraints.

Improve your creditworthiness: The lender must see that you are worthy of the credit you are seeking. This means that how you are managing your other debts, i.e. if you are paying installments on time or before due dates. If a lender sees a positive behavior with regard to your other debts, he may extend certain advantage in your current loan.

Consider pre-approval: Before you start looking for a house, get a pre-approved loan so you can have a realistic idea about how much you can spend. A pre-approval will determine how much money you are qualified to borrow for a purchase.

Keep all documents ready: When applying for a loan, the lender may ask for certain financial documents. Spend some time in getting all paperwork in order so the loan process is accelerated. Your bank statements, salary slips, tax papers etc. are some examples of documents you may need.

Explore the entire market: There are many players offering home loans in the market and thus it is wise to explore all the options. Lenders may provide discounts, better interest rates or additional benefits which must all be considered before making the decision.

Decrease your loan value: Try to make as much down payment as you can. Bringing down your liability will improve your creditworthiness and lower your monthly payments. You could use the existing funds to fuel this payment.

See your financial situation: It is important to do your number crunching before you set out looking for the right loan against your home. See your financial position for next few years, exact value of the property you plan to buy, monthly expenses etc. before you fix the amount.

Understand loan types: One should know the difference between fixed and adjustable rate loans. While the former doesn’t change even if there are fluctuations in the market, the latter may depend on the prevalent base rate. See your own situation and decide which of the above will better cater to your needs.

Be patient: See the financial market and then decide if it is feasible and sensible to take a loan. Do not make any desperate decision as you may get higher rates or fewer benefits on your loan.

It is always better to take advice from an expert so you are better prepared before you set out to seek  home loan.

We, at Greater Central Texas Federal Credit Union, offer affordable home loans in Killeen, TX. For more information, you can call at (254) 690 – 2274.
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