If you’re buying a car in Wisconsin, there are things to know about car loans right now that can help you get the best price… The average monthly car payment in the United States has surpassed a record-high $700 a month (according to Cox Automotive/Moody’s Analytics). With 75% of Americans relying on a vehicle to get to and from where they need to go, this is not an ideal trend.
The increase in payments is directly tied to the increase in car prices. Car prices are on the rise because of the chip shortage. Used car prices have also skyrocketed nationally, according to CU Insight. This is a trend we’ve seen locally, as well. If you’re in the market for a new vehicle, here are the top three things to know about car loans right now…
Car Loan Tips
- Talk to your Credit Union before you finance! When it comes time to finance your vehicle, it can be easy to simply accept the dealership’s financing options. Before you do that, however, it’s important to know that you might end up paying a higher interest rate than if you were to go to a lender. Also, dealerships often offer cash back OR a low interest rate, but usually never both. Take the cash back and finance with your local financial institution (credit union). Your interest rate may be higher with the local institution, but you will end up paying less in interest and costs because you end up borrowing less money by taking the cash back. Be sure to shop around to find the best financing for your new vehicle.
- Find the Value of Your Vehicle. A chip shortage has led to a vehicle shortage and dealers are able to charge more for the vehicles they do have. Used cars are becoming an attractive option for some buyers. Find the value of a vehicle here.
- Work on your Credit Score before you buy. Having an excellent credit score will help you get the best auto loan rate. Oftentimes, a lender will have a minimum credit score requirement, though there are lenders that will look at a person’s overall financial picture and payment history. Before applying for an auto loan, review your credit reports and dispute any errors.
Find MMCCU loan rates here. Find more helpful tips on getting a car loan on our resource page here.
