Tag Archives: Auto Loans and Financing

Car Prices Hit a Record High, What Does this Mean for You?

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The average new car price hit a record high of $38,255 last month, according to JD Power. That’s up 12% from the same period a year ago.

If you’re out car shopping right now, be prepared to pay bigger bucks than usual for that vehicle. About two-thirds of car buyers paid within 5% of the sticker price last month, with some even paying above sticker price. That means there are fewer deals to be had and fewer negotiations taking place.

Why? Due to a computer chip shortage at auto plants around the world, car dealers are left with a fraction of the vehicles (both new and used) than what they typically have on hand. Since more people are buying used cars, they are also becoming as difficult to get as new cars.

Here are a few things to keep in mind if you’re in the market for a new or used vehicle right now:

  • Don’t expect a great deal: Don’t be surprised if the dealership only discounts the vehicle you’re looking at by a few hundred dollars, if anything at all.
  • Search outside of your community: Not finding what you want in your local area? Look at dealerships a bit further away from home. This can make a difference in getting the car you want or in hopefully getting a better deal.
  • Ask for top dollar for your trade-in: One bright spot is if you have a vehicle to trade-in, because of the shortage – trade-in values are at an all-time high. This can help cushion the higher sales price.
  • Hit pause: According to Edmunds, the vehicle shortages might last for another six months or so. If you’re not in a hurry to buy a car right now, their best advice is to wait a bit.

Are you still considering buying a new or used vehicle and need a loan? Click here to find out about a First Financial Auto Loan or get pre-approved to ensure you know where to start, what monthly payments you can afford and get the best deal possible for you.*

Waiting it out? You may be able to save by refinancing your current vehicle from another lender.** Click here to get started by filling out our online quick Auto Loan Review inquiry form.

Do you have a lease coming due soon? Another option is to keep the car you already know and love, by buying out your car lease.* Get started here.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial 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 for credit union membership prior to opening any other account/loan.

**Not all applicants will qualify, subject to credit approval. 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. A $5 deposit in a Base Savings Account is required to establish membership.

What to Know Before You Buy a Car

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Have you been considering purchasing a vehicle? Now could be the right time for you to buy, as dealerships and DMVs start to open back up in New Jersey.

Due to declining sales in light of the COVID-19 pandemic, dealerships are most likely highly motivated to sell vehicles right now – but you may not necessarily get the deal that is best for you. Our goal is to encourage you to do your due diligence and buy a vehicle that works for your lifestyle and budget. To help you make a smart decision, we’re providing a few tips to ensure you’re well-informed.

Know you have choices. Due to dealerships looking to make up for lost sales, they’re probably offering flashy, headline-making deals. However, once you take a look under the hood, the deals aren’t always as great as they can seem. For instance, a cash rebate is more likely to be a better deal than 0 percent interest when paired with a low-interest loan that can lower your monthly payment. Therefore, consider taking the rebate and finance or refinance your ride with First Financial!*

Consider your warranty options. When you’re buying a vehicle, whether new or used – dealers will try to sell you or automatically include add-ins like warranties to your loan. When buying a car, think of how long you plan to own it. If you trade or upgrade your vehicle often, you may not need an extended warranty. Typically, new vehicles come with manufacturer warranties that supersede any extended warranties. This means that your extended warranty has no value until the original manufacturer warranty expires.

If you plan on keeping your vehicle for an extended length of time, an extended warranty could be right for you. Compare the costs of the warranties the dealer offers with our Mechanical Repair Coverage options.**

GAP Insurance. GAP stands for Guaranteed Asset Protection. What is GAP insurance? It’s optional car insurance coverage that helps you pay off your auto loan in the event that your car is totaled or stolen, and you owe more than the car’s current value. This helps bridge the “gap” between what you owe and what your insurance is willing to pay. For example, say you owe $25,000 on your car but the actual value is $19,000. If you incur a total loss accident, your insurance will most likely only pay the value amount of $19,000. GAP insurance will pay the other $6,000 so that you are debt-free. Compare the GAP insurance from the dealership with our Loan Payment Protection options.

If you’ve made up your mind to purchase a vehicle, don’t be intimidated by the dealership. Take control of your car buying journey and get pre-approved with First Financial.* Learn more about our current auto loan offerings, or fill out a quick inquiry form online. We can help you compare the numbers and guide you to make the best financial decision for you!

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial 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 for credit union membership prior to opening any other account/loan.

 **Mechanical Repair Coverage is provided and administered by Consumer Program Administrators, Inc. in all states except CA, where coverage is offered as insurance by Virginia Surety Company, Inc., in WA, where coverage is provided by National Product Care Company and administered by Consumer Program Administrators, Inc., in FL, LA and OK, where coverage is provided and administered by Automotive Warranty Services of Florida, Inc. (Florida License #60023 and Oklahoma License #44198051), all located at 175 West Jackson Blvd., Chicago Illinois 60604, 800.752.6265. This coverage is made available to you by CUNA Mutual Insurance Agency, Inc. In CA, where Mechanical Repair Coverage is offered as insurance (form MBIP 08/16), it is underwritten by Virginia Surety Company, Inc. Coverage varies by state. Be sure to read the Vehicle Service Contract or the Insurance Policy, which will explain the exact terms, conditions, and exclusions of this voluntary product. MRC-2341946.1-1218-0121 © CUNA Mutual Group

3 Important Car Buying Tips

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Are you looking to buy a new ride before the end of the year?  Here are three important factors to consider before you sign your name on the dotted line.

Needs vs. wants: What do you plan to use your new ride for – commuting, weekend trips? These are just a few questions you should consider.  A smart car might get incredible gas mileage during your long commute, but really lacks in terms of cargo space. You may be able to get a bag of groceries home, but what about that 6-foot ladder you need? Don’t forget about things like Bluetooth connectivity and heated seats also. Weigh all your options before getting too excited about what car looks the coolest.

Monthly payments vs. total price: You love the lower monthly payments, but are you really considering how much a new car is going to cost you by the time you’ve paid it off in six years? Maybe you’re a big fan of the total price you’re getting, but you know the monthly payments are going to take some sacrifice in your budget. Is that something you really want to endure? Have you also factored in other costs like insurance, gas, oil changes, tires, and preventative maintenance? Take your time and make a list so you get a better idea of the true cost of your new vehicle.

Know your car before you buy: Do some research and see how other owners are feeling about their purchase.  Always take a test drive, and try riding through parking lots. How does it ride? Is it only smooth on smooth roads? What’s it like going over a speed bump? When it comes time to buy, it shouldn’t be a mystery and you should feel comfortable with your decision – this is a big purchase you will be using daily over at least the next several years.

In the market for a vehicle? If you’re just starting to shop, get preapproved and if you’re ready to make the purchase – apply for an auto loan online 24/7. We have quick approval decisions and same day closings!

APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial 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 for credit union membership prior to opening any other account/loan.

Article Source: John Pettit for CUInsight.com

How to Decide When It’s Time to Buy Another Car

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At a national average of $479 a month, car payments can take a big chunk out of the monthly budget. Even if you avoid car loans, the high cost of a vehicle can delay other savings goals. Either way, it’s rewarding when a vehicle costs nothing more than fuel and routine maintenance. In fact, it’s such a rewarding feeling that you might miss important signs it’s time to start car shopping again.

Being frugal is a great quality when it comes to vehicle purchases – while the average consumer purchases a new one every 3 to 5 years, today’s vehicles are designed to last 10 or more. Still, it’s possible to be too frugal and end up costing yourself more money in the long run. If you have any doubts about whether it’s time to buy a newer vehicle, consider these four signs.

1. Your Vehicle’s Safety is Questionable

Aesthetic qualities and luxury features are one thing, but safety is quite another. If there’s any question whether your vehicle can get you safely from Point A to Point B, it’s time to consider an upgrade. Here are a few examples of what might constitute a safety concern:

  • Your vehicle sometimes has mobility problems. If this happens on the road, it could cause an accident.
  • Your vehicle lacks important safety features. Newer vehicles are equipped with advanced safety features, but we’re talking about the basics — seatbelts, curtain air bags, traction control, etc.
  • Your vehicle has been in an accident or has extensive rust that could compromise its structural integrity. The appearance of rust might not bother you, but the damage it does to internal parts could.

If you have an older vehicle and you aren’t sure if it’s safe, check with a trusted mechanic or vehicle safety inspector.

2. Your Vehicle Needed a Major Repair in the Last Year

Ditto for cars that frequent the auto repair shop. Occasional out-of-pocket repairs are less costly than a car payment, but if repairs exceed that $479-per-month average car payment, you might want to consider a newer vehicle. It’s easy to lose track of expenses that spread out over time, so get out the receipts and do the math.

3. Your Vehicle is Costing You in Other Ways

Maybe you work further away from home now and that gas-guzzler is jacking up your fuel budget and eating into other categories. If your car frequently fails to start in the morning, it might be costing lost hours of work or putting your job in danger. Be sure to consider these and other hidden ways your vehicle is costing you that might be grounds for trading it in.

4. Your Vehicle No Longer Fits Your Lifestyle

We tend to choose the size and style of vehicle that best fits our lifestyle, but preferences and lifestyles can change. Maybe you’ve become a new parent, sent your last child to college, or spend more time in your vehicle than in the past. All these changes can affect which vehicle is best for your needs. Just because you haven’t run your vehicle into the ground, doesn’t mean it’s wrong to trade the car in for something else that’s a better fit for you and your family.

Figuring out when to change vehicles is tricky. Use these four tips, and make the decision that’s ultimately best for you. If you live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in NJ – First Financial has some of the best auto loan rates and incentives in town!* Let us help you buy your new ride.

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial 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 for credit union membership prior to opening any other account/loan. Federally insured by NCUA.

Article Source: Jessica Sommerfield for moneyning.com

The 4 Best Months to Buy a Car

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From Mondays when business is slow to right before closing when salespeople are in a hurry, there’s no shortage of theories about the best time to negotiate the best price on a new car. But what if you’re not a Monday person or you work the swing shift? Here are the four best months to negotiate a new car deal.

May

Memorial Day weekend kicks off the “big sales event” season for car dealers from coast to coast. And of course, the typical Memorial Day sale runs longer than just those three days. If you want to head into summer in a new ride, this is the time to do it.

Also, according to data compiled by TrueCar, Memorial Day weekend is an especially good time to shop for a mid-size SUV.

October, November, and December

Yes, all three of these are good months to go car shopping, but each month for a different reason – and a different type of car.

October is the first month that dealers really become aggressive about clearing out the previous model year. According to TrueCar’s data, buyers in October average nearly 8% savings off MSRP.

October is also a slow month for full-size pickups. With supply high and demand low, it’s an especially good time to deal on that F-150 or Ram 1500. Most pickups don’t change much from year to year, so if you’re willing to accept a truck from the previous model year, you may find yourself with a screaming deal.

Black Friday is supposed to be all about retail. However, in recent years, car dealers have jumped on the Black Friday bandwagon, too. TrueCar data suggests that November is an especially good month to buy midsize and compact cars. However, you’re well-advised to avoid SUVs and crossovers in November. Sure, supply is ample, but so is demand. Dealers are less likely to deal on whatever’s hot at the moment.

By the time December rolls around, car dealers aren’t thinking only about clearing out the previous year’s models; they’re thinking about hitting their annual sales goals, too. The big push is on to close deals. If you’re in the market for an SUV, TrueCar’s data indicates that waiting until December will pay off. Regardless of what vehicle you’re looking for, keep this in mind: While you may get a great deal on the previous model year, by December your choices will likely be very limited.

Bonus: New Year’s Day

Why would you go car shopping after the end of the year? Isn’t it already too late? Haven’t the dealers already reset for the start of the new year? It may surprise you to learn that the car dealer year actually ends on January 2. This gives dealers one final holiday to clear out inventory and make sales quotas. It’s literally their last chance to sell you a vehicle during the current year, so you’re really in the driver’s seat, so to speak.

Limit your car shopping to the months (and holiday) described here, and you’re sure to save some serious dollars!

If you need help financing, First Financial has you covered with low rates, personalized service, same-day approval decisions and electronic closings! Learn more here, and apply online 24/7.*

Article Source: CUInsight.com

*APR = Annual Percentage Rate. Not all applicants will qualify, subject to credit approval. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. A First Financial membership is required to obtain a First Financial 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 for credit union membership prior to opening any other account/loan. Federally insured by NCUA.

 

Common Auto Loan Financing Misconceptions

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AutoLoans“Don’t believe everything you hear.” How many times have you heard this when you were a kid? Well, everyone grows up and it’s time to actually listen to that little old saying, especially when it comes to buying a vehicle. There are tons of common myths and misconceptions out there, but what is the truth behind these myths? Find out the true answers to some of the most common car buying myths right here:

Myth #1  Auto dealers will always have the best loan rate & payment.

This isn’t always necessarily true. Credit unions and other financial institutions also offer competitive rates compared to dealerships. Those who are looking into buying a car should shop around and not only compare rates, but also compare restrictions, to find the best deal that fits their wants and needs.

Myth #2 Seeking multiple pre-approvals/loan offers will destroy your credit rating.

An individual’s credit score will not be affected negatively if seeking multiple offers. The analysis will have to be made within a certain time period of 14 days. However, keep in mind while shopping around this may cause multiple creditors to request a consumer’s credit report.

Myth #3  Auto loan refinancing is expensive.

It’s actually the opposite. Refinancing can drastically reduce your monthly payments and is an option you should consider. Have you stopped into your local First Financial branch location to see how much we may be able to save you each month by refinancing your car loan? Or give us a call at 732.312.1500, Option 4.

Myth #4 Refinancing isn’t an option on an auto loan.

Most people know that refinancing an auto loan can provide the same benefits as refinancing a home loan. They both can save you a lot of money by lowering the monthly payment or interest rate. Many may not know that refinancing an auto loan is actually much easier than refinancing a home loan. You might want to consider refinancing if your current car loan interest rate is above 6 percent, doing so could save you hundreds of dollars each year if you are approved!

Myth #5 Consumers think that even though Credit Unions have better rates – that you have to have perfect credit to get them, or be part of a union or work at a certain company to get them.

You do have to be a member of a Credit Union to get the Credit Union’s rates, and the rate you qualify for is based on your credit worthiness. However, most people do not realize just how easy it is to join a Credit Union these days, and that Credit Unions will at least try to work with you and help you get on the right track to a better financial standing if you aren’t currently. The majority of Credit Unions how have community charters – where you simply need to live, work, worship, or attend school in a certain area in order to become a member of that particular Credit Union. That’s certainly the case at First Financial – to join $5 in a Base Savings Account is needed at all times, and you must live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties in New Jersey. Plus, once you are a member – your immediate family can join too.

As always, First Financial offers great low rates – and they’re the same whether you plan to purchase a new or used vehicle!  

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