Category Archives: Car Buying, Auto Loans and Financing

What to Do if You’re Not Approved for an Auto Loan

Posted on by
Reply

Hitting the “submit” button on an auto loan application can feel exciting (and maybe a little nerve-wracking). However, that excitement can quickly turn into confusion and frustration if you find out your loan application was not approved. Although this can be discouraging, you’re not alone – and it doesn’t mean you won’t qualify for one in the future. Here’s what to do before applying for an auto loan, to help increase your chances of getting approved and in the driver’s seat of your new wheels.

Reasons Your Auto Loan Application May Have Been Denied?

Below are some common reasons why car loans may not get approved.

  • Low credit score, poor credit history, and/or limited credit history.
  • High debt-to-income ratio.
  • Income below the minimum requirement set by the lender.
  • Irregular employment or a recent job change.
  • Incomplete or inaccurate application.

Step 1: Find Out the Reason You Weren’t Approved

If you were just denied, take a step back and wait to receive a letter from your lender. According to federal law, lenders must send you a letter when your auto loan application is declined (or, if it is approved on less favorable terms than you requested). You can expect this letter to tell you the reasons that drove the decision and next steps. Review the reasons in the letter – making improvements in these areas can help boost your future approval odds. Don’t hesitate to contact the lender if you have any questions about the information within letter, or if you haven’t received one.

Step 2: Review Your Credit Report

It’s generally recommended to review your credit report before applying for a loan. Your credit report is a key factor that lenders consider when making a lending decision – and it’s in your best interest to know the information they are basing the decision on. You’ll want to review your credit report to ensure all the information is accurate and up to date. It isn’t unheard of to find mistakes on your credit report – such as incorrect balances or credit limits, or accounts that were inaccurately reported as late or delinquent.

Any of the above errors could contribute to a loan denial, and you would want to have them corrected before applying again. Understanding your credit score and report can also help you make more informed financial decisions. You’ll also want to be aware that different lenders have different requirements and restrictions.

Did you know you are entitled to a free copy of your credit report every 12 months from each credit reporting bureau? Visit AnnualCreditReport.Com to request your free copy today.

Step 3: Improve Your Credit Score or History

Improving your credit score is always beneficial – it increases approval odds for loans and credit cards, and may even qualify you for better interest rates on those products. You can improve your credit score by making on-time payments, lowering any outstanding balances on credit cards, and avoiding applying for new credit – especially prior to applying for an auto loan again.

There are certain actions that can positively impact your credit score quicker than others. For example, the result of paying down balances can be seen in as little as a few months, whereas a late payment can have a negative impact on your score for longer.

If you have limited credit history, lenders might not have enough information about you to determine your likelihood to repay your auto loan – which could also lead to a denial. If you have limited credit history, consider applying with a co-signer to help increase your chances of loan approval. We’ll cover this in the next step.

Step 4: Consider Adding a Co-Signer

A co-signer is someone who applies for a loan with you and agrees to make the payments if you are unable to. This provides more reassurance to the lender that the loan will be repaid. Your chances of qualifying for a loan might improve if you select a co-signer with a strong credit score, long credit history, and sufficient income. You’ll want to be sure the co-signer is someone you trust, and that you both fully understand the responsibilities and risks up front.

Step 5: Consider Saving for a Larger Down Payment

Consider saving for a larger down payment if your financial situation allows for it. This can improve your approval odds by reducing the amount of money the lender will need to lend to you. In the end, by putting more money down you’ll likely pay less interest over the life of the loan.

Step 6: Explore Other Vehicle Financing Options

If you only applied for an auto loan through one lender such as a large national bank, consider other options – like your local credit union or a community bank. You might find more flexibility and more personalized lending decisions.

If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties and are exploring your auto loan options – visit one of our local branches or call us to make an appointment at 732.312.1500.*

If you had your eyes set on driving off with a new or new-to-you vehicle and you recently received an auto loan denial, don’t worry – it isn’t necessarily the end of your car buying journey. Remember to be prepared, make informed decisions, improve your credit profile, and try again when the time is right.

*Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.

How to Prepare Before Buying Your Next Vehicle

Posted on by
Reply

Buying a car is a big ticket purchase that shouldn’t be done without careful planning. It’s important to do your research and make an informed decision about the best possible vehicle purchase for you. Keep reading for ways to prepare before you buy your next ride.

Decide What You Need: Aside from your vehicle being able to get you to and from work, around town, or for after school pick-ups – think about what else you might use your car for. Do you have kids and need extra room and/or trunk space? If so, you might consider a larger vehicle like an SUV or mini van. Do you go on many long road trips, or is most of your driving done locally? All of these are important factors in determining the type of vehicle that would best suit you.

Figure Out What’s Realistic: Sure, maybe you’ve always wanted a luxury vehicle or a sports car – but practically speaking, will either of these fit your lifestyle and budget? You want to make sure you’re driving a car that fits into your monthly budget as well as with how you live and where you typically go.

Know Your Credit Score: The better your credit, the better your loan rate. Take advantage of viewing your free annual credit report before you visit the car dealership, and get a ballpark of what it might be (and also check for any errors on your credit report at the same time). If your credit score is low, you’ll most likely have a higher loan rate and have higher monthly payments throughout the life of your loan. Review how to boost your credit score in one of our previous blogs.

Have a Set Budget: Know what you can afford to spend monthly on a car payment and be ready to stand firm with that number once you walk into the car dealership. Auto loan payment calculators (like the ones on our website), are a great resource in helping you to determine what your monthly payments and the best loan term for you might be.

Search for Deals: Decide on a good time of year to buy your vehicle and see what types of sales and incentives might be out there. For example, toward the end of the summer into early autumn you might find many dealer clearance events as car dealerships try to sell the current year’s inventory before the new year’s inventory comes in. Long holiday weekends like Presidents’ Day and similar are also good times to search for vehicle sales at the dealership. If you’re local to Monmouth & Ocean Counties – be sure to check out our preferred dealers for your next car, and finance your auto loan through us!*

Do Your Research: Investigate the reputation and reliability of the vehicle you’re looking to buy. You’ll also want to thoroughly explore safety ratings, fuel economy, and whether it’s better to buy the car new or pre-owned. Certified pre-owned vehicles are typically only a couple years old with relatively low mileage, usually coming off a previous lease. These vehicles make for a great option because they come at a lower price, but still include dealer perks and warranties.

Also keep in mind, if you do decide to go with a used car – there are certain significant used vehicle maintenance items you’ll want to consider before purchasing:

  • Tires – Tires on a pre-owned vehicle should be inspected for wear and tear. A trick to check the state of the tires is to insert a penny into the groove with Abraham Lincoln’s head upside down. If the top of the head is visible, the tires need to be replaced. Should the tires soon need to be replaced, you’ll want to budget for anywhere between $150 to $200 per new tire.
  • Brakes – Most brake pads will last roughly 35,000 miles. If brake pads do need to be replaced factor in $150-$250 per axle, and even more if the car’s rotors need to be replaced as well.
  • Transmission Service – This item is more applicable to higher mileage vehicles that are above 120,000 miles. Check the manufacturer’s recommendation as well as the maintenance history of the vehicle. Transmission service at a typical quick lube place starts at around $79.99 and increases based on how much transmission fluid is needed.
  • Engine Coolant Flush – Many vehicles don’t recommend an engine coolant flush for 10 years or over 100,000 miles. Check the owner’s manual for the manufacturer’s suggestion. This is also applicable to a higher mileage used car, and will cost you around $100 if you do need this service.

If you’re in the market for a new or new-to-you ride, stop into any of our local branches or give us a call. You can also apply for an auto loan online 24/7. At First Financial, our auto loan rates are the same whether you plan to buy new or used, and we also have same-day approval decisions.* We’re happy to help you with any questions you might have about the car buying process!

*A $5 deposit in a base savings account is required for credit union membership before opening any account/loan. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information. APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. 

Money Saving Tips for Buying a Car

Posted on by
Reply

If you’re thinking about buying a new car and don’t know where to start, you’re not alone. Purchasing a new vehicle is one of the bigger purchases you’ll make in life, so there’s quite a bit to consider. From leasing a brand-new vehicle to buying used, there are so many options out there that fit all different types of budgets.

Between higher prices and lower product availability, the car market itself is more challenging to navigate these days. According to the New Jersey Coalition of Automotive Retailers, most dealers only have 10% to 15% of their total inventory. This is why planning ahead is a key way to get the vehicle you’re looking for at a realistic price.

Here are our top tips for making car shopping more affordable.

Build up your savings

If you don’t already have a savings account dedicated to big purchases like a new vehicle, now’s the time to start! Having money in the bank to buy a car minimizes the amount you have to borrow, which can potentially save you thousands in interest down the line. Make it easier on yourself by setting up automatic deposits into your savings, so you don’t even have to think about it.

If you want to open a savings account for your next car purchase, we’re here to help!* Contact us or stop by your local branch to speak with a representative.

Figure out your down payment

Based on your current income and expenses, you’ll want to calculate the target amount to spend on a down payment and make sure it’s realistic for you. Ideally, you should be putting 20% down on a new vehicle and 10% down on a used vehicle. The more money you put down, the better deal you’ll get. It will not only help you qualify for a loan, but it will also make for a more affordable monthly payment.

Check out our handy auto and loan payment calculators on our website, to help provide you with realistic numbers.

Research and compare prices

Before you head to a dealership, you’ll want to do some research on your own. The more you know about the market value of the vehicle you want, the better deal you’ll get. The best way to do this is to identify the type of car you’re looking for and research the Kelley Blue Book price for each make and model.

Did you know we partner with local dealers to get our members a great rate on their next car? If you finance with us and purchase a vehicle from one of our preferred auto dealers, a great offer will be waiting for you!

Sell or trade your current vehicle

If you’re replacing your current car, you can sell it or trade it in at the dealership. The money you’ve made can be put toward your next car’s down payment. We recommend using appraisal tools to help estimate your car’s value so you know how much you should receive for the vehicle.

Always negotiate

Negotiating is common when making a big purchase like a vehicle. Don’t be afraid to negotiate the price of the car, especially if you’ve found it at a lower price elsewhere or there are minor flaws.

Consider your loan options

At First Financial, we offer personalized auto loans for new or used vehicles with low rates and same day approval decisions.** If you think you’ve spent too much at the dealership, you can also check out our auto loan refinance options or fill out our quick online form to see if we can help you save some money on your monthly payments. Contact us to get started, or stop by your local branch to speak with a representative today!

*A $5 deposit in a base savings account is required for credit union membership before opening any other account/loan. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

**APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.

How to Save Money and Fuel in Summer Weather

Posted on by
Reply

Contrary to popular belief, warmer weather can actually increase your vehicle’s fuel economy in certain ways. This is due to the fact that it’s not cold out, so your car engine will warm up to a sufficient temperature more quickly. Although, keeping yourself and other passengers comfortable in summer weather by using the air conditioning and opening windows – are two factors that contribute to reduced fuel economy and filling up more on gas (which these days is very expensive!) when it’s hot out. So, how can you save some money on gas and still be as efficient as possible when it comes to running your vehicle in warm weather?

  • When you’re traveling at lower speeds, it’s better to put down your car windows. Use the air conditioning when traveling at highway speeds. Opening your vehicle’s windows does increase wind resistance and forces your car to use more energy to drive. However, there isn’t nearly as much of an effect when traveling at slower speeds.
  • Try not to use the air conditioning more than needed, or set the temperate for lower than needed. If you can get by with the a/c on at a higher temperature, you’ll save yourself some money and gas.
  • When parking, try to leave your car in a shady spot or use a sun shade to reduce heat within the car’s cabin. This means reduced air conditioning when your car temperature starts at a cooler one.
  • When you first start your car, try to drive with the windows open for a bit first before turning on the air. This will let hot air out of the car first and put less demand on your a/c.
  • Air conditioning will cool your vehicle faster while you’re actually driving. Turning your vehicle on and blasting the a/c before actually driving will use more energy to cool it. Idling is not good for fuel efficiency.
  • If you have an electric or hybrid car, cooling your car while still plugged into its charger can extend your vehicle’s range. Keeping the air on a warmer temperature will also use less battery power.

While your vehicle’s fuel economy does depend on outside temperature, humidity, and intensity of the sun – under extremely hot conditions, this all could reduce your fuel efficiency by over 25% (especially on shorter trips). By following the above tips – you can save on filling up at the pump as often, as well as extending the life of that tank of gas a little longer this summer.

For more information and cost estimates for your current vehicle or perhaps one you may be thinking about purchasing in the near future, be sure to check out the U.S. Department of Energy and Environmental Protection Agency’s Fuel Economy Guide for Model Year 2022.

In the market for a new ride or looking to buyout your current vehicle lease? Stop in and see us, or learn more and apply for an auto loan online 24/7.*

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan. 

 Article Source: fueleconomy.gov 

Tips for Saving on Transportation Costs

Posted on by
Reply

As gas prices continue to rise, drivers are rethinking their typical routines and spending habits. It’s not just gas that gets expensive, it’s the maintenance costs and insurance too. Simply put, having a car adds up. And according to AAA, the average cost of car ownership is about $10,000 per year.

While owning a car is essential for many, there are always ways to save on transportation costs. Here are some tips to help cut costs.

Walk or bike when you can

The most eco-friendly way to save money on gas is by not driving when possible. Sure, this may not be ideal for everyone – especially if you live in a rural area. But if you’re able to walk or bike to a destination, you can cut back on gas while also choosing a healthier form of transportation. Talk about a win-win!

Use public transportation

Public transportation is a great way to save money on gas, parking, and maintenance costs. Plus, it’s an accessible option for those who may not be able to easily walk or bike around. Monmouth County has plenty of transportation options for community residents including busses, ferries, and trains. There are also plenty of bus routes for those who reside in Ocean County.

Carpool

Live near a co-worker? Why not commute to work together? Carpooling with friends, colleagues, or family members is another great way to save on gas plus add a little bit of extra socialization to your day.

Compare insurance costs

It’s time to re-evaluate your auto insurance plan. Insurance rates can vary depending on your credit score, driving history, and mileage. So, if anything changed or it’s been a while since you’ve secured a new plan, it’s best to compare rates. Don’t know where to begin? Talk to your local broker to see what your options are.

Keep up on maintenance

Having routine maintenance done on your vehicle can help prevent future issues and save on repairs. Under-inflated tires, for example, will wear them down even faster and hurt your gas mileage. Even getting your car washed regularly will prevent rust and residue that can damage the finish of your vehicle. (Pro tip: Try washing your car by hand to spare an extra $15-$20!)

Avoid speeding

Sure, watching your speed will prevent you from getting a pricey speeding ticket, but did you know it will also help your gas mileage? Speeding decreases the fuel economy of your car, meaning you’ll get fewer miles to the gallon than if you slowed down a little bit. All the more reason to go the speed limit!

Looking for a new or pre-owned vehicle? Our auto loans have great low rates, so you can get a new ride AND lower your monthly payments too! Visit a First Financial branch or contact the Loan Department to speak with a representative today.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.

 

Car Maintenance Tips to Save You Money

Posted on by
Reply

It’s safe to say owning a vehicle can be expensive. Between gas, oil changes, tires, maintenance, and insurance, you can expect to have a good portion of your budget go toward car upkeep. In fact, AAA says the average cost of car ownership is about $10,000 per year. There are ways, however, to cut back on costs with proper vehicle maintenance and savvy budgeting. Here are our top car maintenance tips that will help save you money down the road.

Get your car washed and buy touch-up paint

This is not just a vanity suggestion – regularly cleaning and waxing your car protects your paint by preventing rust and residue that can damage the finish to your vehicle. This is especially important during harsh winters and if you park your car outside. Touch-up paint can seal chips and cracks before they become a bigger problem as well.

Don’t ignore your tires

Under-inflated tires will wear them down more quickly and negatively impact your gas mileage. Plus, low pressure tires can affect braking and make steering less responsive. This is not only dangerous for your car, but also for you. Thankfully, most gas stations have free or low cost air pumps you can use.

Shop around for mechanics

Sure, finding a mechanic is easy – but finding one with honest prices can be a challenge. Don’t just go for the convenient option, read reviews and ask friends and neighbors for recommendations. When you do find the right mechanic, research rates ahead of the appointment. Websites like RepairPal can give you an idea of what you should expect to pay for a particular repair, and connect you to certified mechanics in your local area.

Order parts online

Need to replace a part of your vehicle but the estimated price from the repair shop is too high for your liking? Your best bet would be to look online for parts. You’ll likely find better deals that way, even with shipping fees.

Consider repairing what you can at home

Many repairs and maintenance tasks can be done right in your driveway. Even if you’re not an experienced mechanic, you can likely change out spark plugs, oil, filters, and more with a quick Google search or YouTube video. You can also try tapping into your network to see if you have a friend or family member who can help. This way you can save on expensive labor fees!

Looking for a new or pre-owned vehicle? Our auto loans have great low rates, so you can have a new ride AND lower monthly payments! Visit a First Financial branch or contact the Loan Department to speak with a representative today!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms and conditions may apply. Actual rate may vary based on credit worthiness and term. First Financial FCU maintains the right to not extend credit, after you respond, if we determine you do not meet our guidelines for creditworthiness. Current loans financed with First Financial FCU are not eligible for review or refinance. A First Financial membership is required to obtain an Auto Loan and is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See credit union for details. A $5 deposit in a Base Savings Account is required to establish membership prior to opening any other account/loan.