Make your life easier with 96.5 TIC and American Eagle Financial Credit Union.
Gina J and Howard Brady, Chief Lending Officer for American Eagle Financial Credit Union, are guiding us through solutions to the biggest financial questions we all have.
Do you know how to get the best rate on a loan?
How to find the best dealer when you’re shopping for a car?
Or why it makes sense to bank with a credit union?
Find out now, and listen to more expert advice from AEFCU every Monday at 4:45pm on 96.5 TIC!
When To Refinance an Auto Loan
You have an auto loan, should you refinance it? The key reason to refinance an auto loan is to save money. There’s a couple ways to accomplish this. First and foremost, you want to reduce your interest rate, which will save you monthly and over the course of the term. If you’re struggling monthly, you can also extend out the term, which could give you the cash flow you want… but you will end up paying more for the car over time.
In a perfect world, you want to reduce the rate and keep the term the same, which is something you actually can find. For example, American Eagle is running a promotion which will take 2% off the interest rate of your auto loan. It may not seem like a lot, saving about $20 per month, but over the course of a 5-year loan that will save more than a thousand dollars.
It’s also worth noting, you can refinance as many times as you want, there’s no limit and no closing costs. You can get more information in the Consumer Loan and Auto Loan sections on American Eagle’s website.
What To Know When Buying a Used Car
Are there different things you should take into consideration if you’re buying a used car? Absolutely. With a new car, the new car price is the sticker price, but when you’re dealing with a used car there’s a few things you should keep in mind:
1. Go to NADA.com (National Auto Dealers Association) and understand the value of the car you’re looking at. This website will validate the current market value of the vehicle, to understand if you’re getting a good deal or a bad deal.
2. Go to CarFax.com, where you can learn the number of owners a vehicle has had, some service history, and whether the car has been involved in any major accidents.
There’s typically three transactions within an auto purchase. There’s the trade in, so you will want to know the value of the car you’re trading in, there’s the purchase itself (which you can negotiate with the dealer), and the financing. Dealers can make money on each aspect of an auto sale, and one of the ways they profit from financing is by working with financial institutions who can offer some of the most competitive rates in the industry.
Choosing The Best Dealership
When Gina bought a new car, she didn’t know what dealership to use. How do you pick a good one to work with? Just like anything in life, some people are better at things than others, and the same applies to car dealers. A good first step is to visit the Better Business Bureau online (bbb.org) to research any dealership you want to align your purchase needs with the services they provide.
The biggest thing most of us want is the best deal possible, and that’s kind of tricky to find because the negotiation is where the magic happens. You can see a certain price on a website which will give you some idea of what you will have to pay for a car. Past that, you can arm yourself with information– get pre-approved, understand the dealership and the car you’re looking at, and prepare yourself to negotiate the very best deal.
Presented by American Eagle Financial Credit Union