Auto Loans 101: Driving Away with Eastex Credit Union

Britney Balderas | Posted on July 8, 2024 |

Are you looking to buy a new or used vehicle? There are several factors to consider before buying the car of your dreams. At Eastex Credit Union, we understand that purchasing a vehicle is a serious decision and we have resources to assist you during this process.

Our Resources

These are a few tips to help start the auto buying process:

Determine your budget. Before you begin looking at cars, make sure you know what you can afford. It is recommended that your monthly auto payment be no more than 20% of your gross monthly income. If you need help calculating what you monthly payment should be, use our auto loan calculator.
Do your research. There are so many cars out there. Take the time necessary to find the right make, model, color, and year. Getting all the information needed can help make the auto buying process easier. Make sure the car you choose fits your lifestyle and budget.
Test Drive. Don’t buy a car without evaluating it first. Make sure you’re comfortable with the car you picked out.
Negotiate the price. You’ve gathered all the information, you’re ready to start negotiating the price of the car. This can be the hardest step because the first price is not the one you should take. Here are some standard tips for negotiating.

Car Negotiating Tips

Now that you have your budget set and the car picked out, it’s time to negotiate. It can be intimidating to negotiate with the dealership, but we have some tips to make sure you get the best price. Knowledge is power. As stated above, the more research you do the more control you have when it comes to negotiating. Research any estimated tax or dealer fees. If you have a car you’re trading in, how much is it worth? All of these can factor into what price to start negotiating for. Remember the dealers want to sell you the car, but they also want to make money. Never show all your cards early in the discussion. Most of the time, the first question they ask is how much you can afford. Don’t give them the exact number you calculated. Instead, ask them about the out-the-door price. This gives the full price of the car and not just the monthly payment. This shifts the focus from matching the monthly payment to the price of the car. Don’t be afraid to walk away. Buying a new or used vehicle is a big decision. If you are not comfortable with the price offered, then walk away. It may not be easy, but there are plenty of dealerships that will offer the price you want, or at least get closer to that price.

What Can’t You Negotiate?

Some things are in your control and some things are not. It’s important to know what numbers you can change and focus on those. For example: registration fees and taxes fall into the list of things that are not negotiable. This has nothing to do with the salesperson, these prices won’t budge.

Why An Eastex Auto Loan?

A credit union auto loan offers you low rates and comfortable repayment options. We want what’s best for you when making a big purchase. We can answer any questions you have when starting the auto buying process. Apply for an Eastex auto loan.

Start your auto loan journey with us!

At Eastex Credit Union, we’re dedicated to helping you through the auto buying process. Contact us at 409-276-2525 or visit a branch today!