Person driving car

Buying a Car

YOUR PREPARATION PROFILE

YOU’VE DETERMINED IT’S TIME TO BUY A CAR—BUT THE PROCESS IS MORE THAN HEADING TO THE DEALER AND DRIVING OFF THE LOT. BECU CAN HELP YOU GET PREPARED AND DRIVING SAFELY AND MORE QUICKLY BY MAKING SURE YOU HAVE WHAT YOU NEED.

1

The first step in smart car buying is to know your budget.

PLEASE ROUND TO THE NEAREST DOLLAR.

What's your monthly income?

What are your combined monthly expenses?

Include everything you need to pay in 1 month: rent, loans, phone bills, food, etc.

2

BE YOUR BEST ADVOCATE BY UNDERSTANDING YOUR CREDIT.

DO YOU KNOW YOUR CREDIT SCORE AND WHAT’S ON YOUR CREDIT REPORT?

DO YOU PLAN TO:

3

IT’S IMPORTANT TO CONSIDER ALL YOUR BUYING OPTIONS—FROM NEW TO USED, THERE’S A VEHICLE THAT’S GOING TO BEST MEET YOUR NEEDS.

WHAT DO YOU AGREE WITH MOST?

SELECT ONE.

HERE’S YOUR PREPARATION PROFILE.

AFTER PAYING ALL OF YOUR CURRENT BILLS, YOU HAVE

$X,XXX

LEFT OVER TO DEVOTE TO PAYING FOR YOUR CAR, INSURANCE, GAS, AND OTHER NEEDS PER MONTH.

Money with question mark

IS THAT GOING TO BE ENOUGH? THINK ABOUT ADJUSTING YOUR BUDGET IF YOU NEED MORE FOR YOUR MONTHLY EXPENSES.

Caution sign

MAKE SURE TO BUILD AN EMERGENCY FUND NOW SO THAT YOU’RE TAKEN CARE OF IF UNEXPECTED EVENTS OCCUR.

INSURANCE RATE CHANGES CAR MAINTENANCE
GAS OR ELECTRIC CHARGING ANNUAL LICENSING FEES

YOU KNOW YOUR CREDIT SCORE AND REVIEWED YOUR CREDIT REPORT!

IF YOU’RE LOOKING FOR A LOAN, LENDERS WILL USE YOUR CREDIT SCORE AND CREDIT REPORT DETAILS TO DETERMINE YOUR LOAN QUALIFICATIONS AND INTEREST RATES.

Knowing your credit and understanding your credit report is an important step in making financial decisions.

With your credit information at hand, you’ll be prepared to answer any questions a lender might ask, and you can ensure your record is accurate. The stronger your credit, the better your loan offers and interest rates will be.

You’re legally eligible to receive a free, annual copy of your credit report from each credit bureau. Check out annualcreditreport.com (you’ll have to pay a nominal fee to include your FICO score). Or, get a free score with BECU online banking—free for members.

Since you have the capital to pay in one go, you’re ready to search for your car. Knowing the car you want and comparing dealer pricing will always be in your best interest!

YOU’RE LOOKING FOR FINANCIAL SUPPORT IN AFFORDING A CAR—YOU HAVE OPTIONS!

  • Get pre-approved before you go car shopping to be sure of what you can afford.
  • Compare all interest rates and the length of your loan.
  • Request your dealer to finance your loan through a credit union or bank of choice.
  • With dealer-provided loan options, it’s always best to compare options.
  • It’s always best to compare in-house financing from a deal to a loan you can obtain through a credit union or financial institution.
  • Be sure to compare interest rates and the length of the loan.

BASED ON YOUR PREFERENCES, YOU MAY WANT TO CONSIDER A NEW CAR.

  • Potential for a higher down payment to lower monthly costs
  • Traditionally lower interest rates
  • Full manufacturer’s warranty
  • You’ll have some flexibility on features depending on your budget, and you’ll own it eventually.
  • Just as with a new car, the higher the down payment, the lower the loan amount
  • Some manufacturer’s warranty left, with option to purchase additional coverage
  • Unlike a used car, certified pre-owned cars go through a factory-required, multi-point inspection/certification process—you’ll be assured your car is ready for the road.
  • Easier to budget a lower down payment if not paying in full
  • Often a smaller monthly payment
  • Potentially higher interest rate, depending on age of the vehicle
  • Shorter warranty periods
  • Your car might not have as many features or updated technology, but you’ll have lower monthly payments before owning it entirely.
  • Up-front security deposit is typically required
  • Mileage limits regardless of lifestyle (e.g.: average commute or travel)
  • Incremental costs: fees for additional mileage and wear and tear
  • Less to pay for overall car maintenance
  • You’ll have a nicer car with lots of features, but it won’t be a permanent investment. Make sure that’s sustainable for your lifestyle and your financial goals.

TAKE ACTION ON BUYING A CAR TODAY!

YOU DON’T HAVE TO DO IT ALONE.

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