First time auto buyer? You’ve got to start somewhere, and ECCU is the place.
Making your way in the world isn’t a cakewalk. You get out of school and (hopefully) find a job. With the new job comes the need for a car. After all, nothing hurts worse than having unreliable transportation or none at all. At ECCU, we’re making things a little easier with our First Time Auto Buyer loan. As the name suggests, it’s for first time auto buyers with little or no credit. If you’ve been on the job for six months and are earning at least $1,200 per month, you could qualify without a co-signer and begin building your credit.
It’s important to start your loan history with someone you trust.
We can sit down with you and frankly discuss your budget. Our goal isn’t to sell you the car; it’s to help you succeed. Once we determine how much car you can afford, we’ll explain how it impacts your monthly budget. We’ll also look at things like maintenance, fuel, and insurance, and incorporate those as well.
As the bigger picture emerges, you might even decide to go for a bit less expensive car. (The dealer may not be inclined to tell you that.)
We’ll also explain a bit more about your DTI (debt-to-income ratio) which affects your credit score and can impact future credit secured. Most lenders suggest your DTI not to exceed 36 percent of your gross monthly income, excluding housing costs.
Get pre-approved for a better deal.
This means the financing is done ahead of time before you start shopping. We’ll get your application loaded, reviewed, and approved so that once you find the car you want to buy, the loan is ready for you to access. But wait, you still don’t have to visit the dealer quite yet.
We can help you to research the vehicle for features you want as well as MSRP (Manufacturer’s Suggested Retail Price), and make recommendations on how to approach the negotiation. We love to do this type of stuff, so you get a better deal.
Once you’re ready with the loan and have a vehicle selected, we’ll explain your payment options. With your new job, you can most likely sign up for Direct Deposit to ECCU, and payments can be allocated directly from your pay. It works like a charm, smooth and simple, without missing a payment. You can also make online payments.
On-time payments boost your credit score.
Now that you have the loan, the car, and payment method established, you can hit the road knowing that with every on-time payment, your credit score is growing stronger. In fact, making regular payments is a top factor in increasing your score. On the other hand, late or missed payments can hurt your score.
Consider a few extras with your loan:
GAP Coverage – If your car is totaled or stolen, this insurance pays the difference after your primary carrier has paid the claim. If your car is a total loss, you may not recoup the entire amount to pay off the loan. GAP coverage makes sure you’re not left with a loan balance and no car.
Extended Warranty – Pays for unexpected repairs, with bumper-to-bumper extended warranty coverage and mechanical breakdown insurance.
Credit Life & Disability Insurance – Pays your loan if something happens and you’re unable to work because of illness, accident or death.
We offer these programs for considerably less than the dealership. For example, purchasing an extended warranty program through the dealer may have a markup as high as 100 percent. Ouch! So be careful if the dealer wants to include these with your car’s purchase price.
The final point: You’re a member.
As a member-owner, the stronger relationship you have with us, the more we can do for you. It’s part of our cooperative nature, and it’s the real deal! Trust is also important. For us, it’s not about making a sale or meeting a quota. It’s about you – and helping you to prepare a game plan that builds not only your credit, but your entire financial future.
Come see us and we can talk more.
Learn more about our First-Time Auto Buyer loan.
To compare a few payment scenarios, try our loan payment calculator.