Buying a new car is an expensive proposition. It’s a purchase people don’t make every day, so it’s essential to make a smart deal when buying your car.
It’s important to remember that the total amount you will pay for your new car depends on three things: the purchase price of the car, the interest rate, and the term.
One of the ways that car buyers get into trouble is by focusing only on the monthly payment and ignoring the interest rate and length of the loan. But, if you use only the size of the monthly payment as your guide, you may end up buying more car than you can afford or paying much more for a car than necessary.
In order to get the low monthly payment you may have to agree to a longer term loan that has a higher interest rate. In fact, even the same interest rate over a longer term will increase the total cost of your new car, possibly by a significant amount. It is wise to get your loan for the shortest term you can afford.
Take a look for yourself—our calculator “Which term of vehicle loan should I choose?” illustrates how very costly your lower monthly payment may turn out to be. You can even change the inputs yourself to see what the same rate over a longer term will cost you (Click here to see).
So don’t get caught in the “Monthly Payment” trap. Finance your car loan at MCU—your best interest is our primary concern.
Why not apply now?
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