The Pros and Cons of Leasing a Vehicle

Have you ever thought about leasing your next car? If the thought has crossed your mind, here are a few pros and cons of leasing a car.

Pro: Lower monthly payments
Generally, lease payments are lower than car payments and if you’re used to having a payment, this probably sounds great to you.

Con: No equity
When you sign a lease, you’ll have to make payments over a defined period of time. When that time is up, the car goes back to the dealer. At this point, you’ll have a decision to make. You can either enter into a new lease or you’ll have to buy the car.

Pro: Repairs are usually covered
Since you’ll only have a leased car for a handful of years, it will more than likely be covered by a factory warranty. This will save you from having to shell out big bucks for repairs while you have the car.

Con: Mileage limit
How many miles do you drive each year? If you drive over 10-12k miles a year, you’ll probably face some sort of penalty fee at the end of your lease term. Be mindful of this, because those extra miles can really add up.

Pro: A new car every few years
If you’re serial leaser, you probably love driving a new car. This is a definite advantage of leasing over buying. Buying and selling cars can be a hassle, so if you love driving new cars, leasing can be a great option for you.

Con: Fees for damages
When you turn in your car at the end of your lease term, the dealership is going to want to sell it. If there are any dents or scratches to be repaired, you may want to get them taken care of before you turn in the car. A little ding in the door isn’t a big deal if it’s your car, but with a lease, you’ll probably have to pay a fee to get it repaired.

Leasing isn’t for everyone. There are definitely advantages and disadvantages to leasing vehicles. Do your homework and decide what is the best option for you.

Have you leased a vehicle and you’ve gone over your miles or excessive wear and tear? First Financial can help you buy out your lease and help you save! With our Lease Buy Out Program, you aren’t stuck with a big lump sum payment. We’ll help you keep that car you love.* Get started today.

*Not all applicants will qualify, subject to credit approval. Not all applicants will yield savings examples advertised. Additional terms & conditions may apply. Actual rate may vary based on credit worthiness and term. See credit union for details.  A First Financial membership is required to obtain an auto loan and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties NJ. 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: John Pettit for CUInsight.com

 

4 Tips to Make Car Buying Easier

If you want to save yourself time, money, and a few headaches when purchasing a vehicle – be sure to follow these steps.

Do your homework.

The last thing you want to do is show up unprepared. Sure, you may find a car you like by walking around the lot, but that can backfire. Study up, look at as many different makes and models as you can online first, and try to be sure you’re getting the car that satisfies your heart and your wallet.

Know before you go: Check out our YouTube video on buying a car in 5 easy steps.

Use your credit union.

Once you know which car you want to purchase, head to your local credit union and find out what kind interest rate you can get on a loan. With this knowledge, you’re now ready to go to the dealership and make a deal.

If you’re in the market for a new or used vehicle, stop by First Financial and apply for an Auto Loan with us! We have the same great low rates whether you plan on purchasing a new or used vehicle.* To apply, click here for our online application or stop into any branch location.

Shop on a Tuesday.

Car dealerships are usually busier on the weekends. By shopping in the middle of the week, you’re going to get more attention and better service. This may not necessarily translate to a lower price, but it will definitely speed up the process and make it easier to get done.

Remember you’re not buying a cheeseburger.

When you have a craving for a Five Guys cheeseburger, you go to your nearest Five Guys and you eat a cheeseburger. It wouldn’t make sense to drive one town over for the same cheeseburger at roughly the same price. With a car, things are different. There are a lot of factors (including the salesperson you deal with) that can determine the price you’re going to pay, so driving 20 minutes to a neighboring dealership may be worth your time and money.

If you are a First Financial member, be sure to visit our Preferred Dealerships. The right car and offer is out there for you!

*Subject to credit approval. 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 for credit union membership prior to opening any other account/loan.

Article Source: John Pettit for CUInsight.com

 

10 Best Values in Used Cars

Good news for used-car buyers: Desirable trade-ins and vehicles at the end of their lease, especially luxury models — are streaming onto the used-car market, and that means more choices at lower prices.

Ten vehicles were chosen between three and four years old that not only were tops in Kiplinger’s rankings for performance, value, and safety when they were new – but also get good marks for reliability.

These vehicles have automatic transmissions, unless noted otherwise, and all have standard stability control and front, front-side and head-protecting airbags. Dealer, private-party and certified prices are averages based on actual transactions reported by Kelley Blue Book for previously owned vehicles with 12,000 miles per year. Check them out!

  • 2011 Honda Civic
  • 2011 Toyota Prius
  • 2010 Subaru Legacy
  • 2011 Toyota Camry
  • 2011 Mercedes-Benz E-Class Sedan
  • 2011 Mitsubishi Outlander
  • 2010 Lexus RX 350
  • 2010 Mazda CX-9
  • 2011 Acura MDX
  • 2011 Chevrolet Tahoe

Click here to learn more about each of these top 10 pre-owned vehicles.

If you’re in the market for a new or used vehicle, stop by First Financial and apply for an Auto Loan with us! We have the same great low rates whether you plan on purchasing a new or used vehicle. To apply, click here for our online application or stop into any branch location. PLUS, when you’re approved for a new Auto Loan of at least $15k you’ll receive a $100 Visa Gift Card for gas and an auto emergency kit!* Click here to learn more about other great rewards and benefits you could earn as a member of First Financial.

*Subject to credit approval. 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 for credit union membership prior to opening any other account/loan. $100 Visa gift card and free auto gift will be issued upon loan closing. Refinances will have the option to receive the Visa gift card or participate in the 2% Challenge promotion. Cannot be combined with any other offers.

Article courtesy of Kiplinger by Jessica L. Anderson.

When’s the Best Time to Buy a Car?

Happy woman buying a carIt’s a good time to be in the market for a new car – especially if you plan to finance the purchase, as nine out of 10 Americans do. Buyers with good credit can take advantage of some very low interest rates.

Rates for new and used car loans are at “their lowest point in the past few years,” according to a new survey of 157 lenders by the website WalletHub. The average interest rate for new-car loans is currently 4.29 percent and 4.96 percent for used cars.

WalletHub found that car loans at credit unions are 25 percent below average, national banks are roughly average, and regional banks are 40 percent above average.

Jack Gillis, author of The Car Book 2015, cautions buyers that the financing arranged through a dealer may be higher than what’s offered from the manufacturer.

“Often the low interest rates advertised by dealers require extraordinarily high credit ratings and sometimes are accompanied by extra fees,” Gillis told NBC News. “Before you talk financing with the dealer, check with your credit union and banks to see what they offer. It’s the only way to know if the dealers’ financing is a good deal.”

Good credit is a real money saver

WalletHub reports that it will cost you about four-and-a-half times more to finance a car if you have fair credit rather than excellent credit. That translates into additional interest costs of about $5,500 for a five-year, $20,000 loan.

Someone with excellent credit can also get extremely low rates for used car loans now. The average rate for these loans dropped nearly 18 percent from last year, WalletHub reports.

“So a few months before you go shopping for a car, check your credit report,” WalletHub’s Jill Gonzales said. ”Make sure everything is in order and there are no errors that could affect your credit score and drive up that interest rate.”

Car loans are also getting longer

As car prices have gone up, car loans have gotten longer. The average car loan in the U.S. is now 67.2 months – a record high and the average price paid for a new vehicle last year was $32,386, reports Edmunds.com.

“A longer loan will lower the monthly payment, but you will be ‘upside down’ in that loan longer,” noted Gerri Detweiler, director of consumer education at Credit.com. “So if you need to sell the car or something happens to it – maybe it’s totaled in an accident – you could owe more than it’s worth.”

A longer loan also drives up the cost of financing that vehicle because you’re borrowing the money longer. The experts at Consumer Reports Autos point out that extended loans also tend to have higher interest rates. Their advice: limit your loan to about 48 months.

First Financial has great low Auto Loan rates – and they’re the same whether you plan to purchase a new or used vehicle!  You can view our current rates by clicking here, and if you like what you see – you can apply right online 24/7.  If you need a handy tool to help you figure out those monthly auto loan payments to see what you can afford before you buy, try our free loan calculator application called AutoCalcubot. We also provide a free auto buying and research tool, AutoSMART – a great place to find new and used vehicles!

Article Source: Herb Weisbaum – NBC Contributor, http://www.today.com/money/whens-best-time-buy-car-right-now-survey-shows-2D80507620

 

 

 

Common Auto Loan Financing Misconceptions

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 866.750.0100, 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!

Here at First Financial, Enterprise Car Sales and First Financial are able to offer First Financial Members monthly deals on used vehicle purchases through Enterprise. Get started by getting preapproved by First Financial and search for certified used cars online with Enterprise Car Sales. 

As always, First Financial offers great low rates – and they’re the same whether you plan to purchase a new or used vehicle!  If you need a handy tool to help you figure out those monthly auto loan payments to see what you can afford before you buy, try our free loan calculator application called AutoCalcubot. We also provide a free auto buying and research tool, AutoSMART – a great place to find new and used vehicles!

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Things to Consider Before Signing Up for Zero% at the Dealership

zero%Zero percent financing is something you’ve probably heard before, however, before you sign on the dotted line, here are some things to consider…

What is really your best deal? Undoubtedly you’ve heard about “zero percent financing” offers that many auto dealers like to promote. Although they seem to be incredible deals, and are certainly tempting, you should read the fine print and know the facts before you head to your local dealer.

To help you decide if zero percent (or a low “teaser” rate) is the best deal for you, here are a few facts and restrictions you may encounter:

  • Almost perfect credit may be needed in order to qualify for these offers.
  • You may be required to give up a manufacturer’s rebate.
  • It could mean shorter terms and larger monthly payments.
  • It is usually offered on a limited number of models.
  • You may be limited to dealer stock and not be able to choose the exact vehicle you are interested in.

Research, research, research! By using our free available research tools such as AutoSMART & Autocalcubot loan calculator, you will be better equipped when you finally make that trip to the dealership. You may find that giving up that zero percent financing for a manufacturer’s rebate will save you more money.

And finally…Read any contract carefully before signing it. Ask questions about anything you do not understand and don’t feel pressured into making a decision right then and there.

Happy shopping!