Auto Loan Guide

From new purchases to auto loan refinancing, CSCU is here to provide you with helpful guidance along the way.

• Make a budget: If you’re uncertain on a car payment and monthly budget, it’s a good idea to create a plan. To begin, make a budget that notes all your monthly income and your monthly expenses. We recommend distinguishing between mandatory (ie: food, rent, utilities, etc.) and optional (ie: subscriptions, entertainment, etc.) expenses.
• Save for your down payment: A down payment can help lower your monthly payment and potentially lower your interest rate. Ideally, you should try to secure a down payment of 10 to 20% of the value of the car you would like to purchase.
• Do your research: Once you know your budget and down payment, hop online and visit our partners at AutoSmart to compare vehicles side-by-side. If you know your comfortable monthly payment, you can use AutoSMART’s finance calculators to determine the price range of vehicles you might consider.
• Apply for pre-approval: Before you head to the dealership, apply online for pre-approval. In addition to helping you land a competitive low rate, this will save you time and skip the negotiation process with the finance department.

• Savings on interest: Refinancing can allow you to secure a lower interest rate, which can save you money on the overall cost of your car. A lower interest rate may be available to you if: 1) your credit score has improved since your previous financing agreement, 2) the federal interest rates have dropped, or 3) you financed with a lender who didn’t offer a competitive rate.
• Smaller monthly payments: If your current loan payment is higher than you’d like, refinancing can allow you to extend your loan terms and consequently lower your monthly payments. It’s important to note that lengthening your loan term will likely result in paying more in interest over the long-term.
• Shorten loan terms: If your current loan does not allow you to make extra payments without a penalty, refinancing can allow you to shorten your loan term and pay off your vehicle more quickly.