Financial Literacy

Choosing Your Financial Institution

Debt Repayment

Income Loss

Building a Budget

Living on Your Own

It’s a Money Thing Explained

Income Essentials

How to Save on Tuition

Common Money Beliefs

Working from Home

Budgeting Basics

Buying a Used Car

Paying for Pets

Pay Yourself First

Responding to Financial Emergencies

Saving with New Skills

Boost Your Credit Score

Using your Credit Card

Student Loans 101

Predatory Lending

Compound Interest Mind Bend

The Rule of 72

Foiling Identity Theft

Intro to Insurance

Organizing your Finances

Credit Union Myths

Growing Your Money Locally

Co-Operatives

Let’s Talk Taxes

Owning vs. Renting

It’s a Money Thing Promo

After Grad: Work or College

Acing the Job Interview

Earning Money Online

Writing a Business Plan

Know Your Checking Account

Good vs. Bad Spending

How to Save on Groceries

Understanding Inflation

Emergency Fund Boot Camp

Avoiding Lifestyle Creep

Breakdown of a Credit Score

Comparing Cards

Loan Basics

Leasing vs. Buying a New Car

Demistifying Mortgages

Saving for Retirement

Investment Vehicles

Trends in the Stock Market

How to Spot Scams

The 3 things you need to know before you buy a new car

There are many things to consider before purchasing any car, but buying a new car might spark particular questions. There are pros and cons to buying a new car, just as there are pros and cons to buying used cars.  First off, when purchasing any vehicle, ask yourself “Why am I buying this car?” Is it for daily use, will you need a lot of storage space, seating space? Make sure the makes and models you narrow your search down to are practical reflections of how you will use the car.

You may love the look of a larger vehicle, but if you don’t have five children, you might not need that much space and that particular car may not be right for your daily commute and errands.

After you’ve considered the personal aspects of which car to buy, move on to the less subjective parts of the process:

1. Depreciation

Most cars depreciate at about 15% per year. With new cars, there is a 20% depreciation rate as soon as you drive off the lot. You want to consider this before you decide to buy a new car, especially if you can’t put much money down as a down payment. Chances are you’ll be upside down on your car loan almost immediately if you’re financing the entire cost.

2. Cost-to-own

Also, consider the true cost to own the car you’re eyeing. These costs include insurance, fuel, maintenance, and more. Maintenance costs vary by manufacturer and model. Do your research—some manufacturers have better reputations than others. Some new cars even come with “free” maintenance plans for the first couple of years or for a certain number of miles.

3. How much can you afford?

Don’t guide yourself solely by what the dealership is willing to lend you. And, don’t be blindsided by an attractive low monthly payment—oftentimes tied to a super-long loan term. Use our online calculators and consider all aspects of financing—the total amount you are going to end up paying for that vehicle when it’s all said and done. That’s what matters.

We can help you before you even step on the lot. As a not-for-profit financial cooperative, we can pre-approve you for an auto loan that fits your circumstances—and your budget. We won’t put you into a loan you can’t afford, and we’re happy to explain everything to you away from the high-pressure of the dealership.