Even a couple of points can make a bad deal better
Buying a car is an emotional decision. Especially if you find a really good deal, or a more dependable, safer model, or a color you really love. You want to drive it home today!
At this point, you could probably care less about the interest rate. Do 2-3 lousy percentage points make a difference?
Yes! Especially if you have a low credit score, or struggle to get your bills paid on time.
Let’s say you could save up to three percentage points, and at the Ashland Community Credit Union we see that all the time. That could save up to $15 a month.
It could be more or less, but hypothetically, let’s start there.
Here are Five ways a lower interest rate can make a real difference in your life:
You could buy a better car.
Assuming you’ll buy a car with payments you can afford, a higher interest rate means you can afford up to $15 less per month. That means you’re settling for a cheaper car. Or passing on the warranty. If you can buy more for the same payment…doesn’t that make more sense?
You can pay more bills on time.
If you have a low credit score, it likely means you have trouble making all of your payments. Do you really want to pay more than you have to on your car loan, and not have enough to make your other payment obligations?
You can save a large sum of money over the long haul.
Do the math. That same $15 per month over 60 months equals up to $900. That’s almost a thousand dollars! Honestly, you wouldn’t just give away a thousand dollars would you? What could you do with a thousand dollars?
You can do more now in the short term.
Saving in the long term sounds great, but maybe you need things now. Food, clothes, medicine, and utilities come to mind. That same $15 could go a long way today for things you need, and you still get the car.
Lower your current payment even more
But what if your current auto loan is already set? You can always refinance your current auto loan. You might be able to extend the loan term, saving you way more money on your monthly payment.
At the Ashland Community Credit Union, we just want to help. Hopefully this information helps you to understand that you can get that car and save money too, with a lower rate loan. Call us to find out how much you could save. Or click here to reach out via email and we'll get back to as soon as we can.