Summer 2017
Everything Auto
5
GET
PRE-APPROVED
While purchasing a new vehicle can be an exciting time, you might face frustration if
you are unable to get the loan for your dream car. Getting pre-approved is a good way
to plan a budget and set your expectations for the type of vehicle you might purchase.
Medical bills, drowning in credit-card debt and unforeseen emergencies can all get
in the way of your credit score, and potentially gaining a loan. Sit down with your
financial institution or dealership before you begin searching for a vehicle.
TAKE A
TESTDRIVE
When choosing a vehicle, there are many sources for conducting research.
Keep in mind that manufacturer or customer reviews can be slightly biased and may
not be what you are actually looking for. The only way to be sure your new vehicle is the
perfect fit is to take a test drive.
MAKE YOUR OWN ROUTE
OBTAIN YOUR CREDIT REPORT
Your credit score is a huge determining factor in being approved for a loan. Obtain a free annual
credit report by contacting the Federal Trade Commission. Once you have your report, analyze it for
any negative marks or errors for debts that have been resolved. According to the FTC, about 50 percent
of Americans whose report contained errors were able to increase their score once the corrections
were made.
Negative marks on one’s credit report may take some time to resolve. Once you know what is
causing a negative impact on your score, you can begin improving it. The FTC recommends several
different ways to help improve your score:
• Pay bills on time.
• Keep balances on any credit cards low. Begin aggressively paying on your highest balances first.
• Consider the amount and types of credit you have. Under some scoring models, the type of
financial companies you do business with can have a negative impact on your score.
GETTING THE LOAN
Now that you are confident in your credit score, you should start inquiring from lenders in your
area about their interest rates and loan terms. It is a good idea to begin your search with a financial
institution with which you are already affiliated. With their terms in mind, compare them to other
local lenders.
Most lenders require you to meet a minimum monthly pre-tax income and have a certain debt-to-
income ratio (DTI.) You can quickly improve your DTI by paying off credit cards or other small debts.
Once the amount of your pre-approved loan has been established, it’s time to begin visiting dealers
and choosing a vehicle within your budget. Your local dealership can offer to provide financing from
its wide network of lenders. Even if you’re pre-approved, take note. Their terms might surprise you.
Before going on a test drive in your new potential vehicle, have a route in mind. This route
should be similar to the path you take during daily commutes. This will give you a good idea
of what you should expect when you commit to a new vehicle.
It also is important to travel a route that features plenty of stop-and-go traffic yet still gives
you a chance to get the vehicle out on the highway to see how it reacts to higher speeds. During
your test drive, be sure to take notes of any concerns you have and immediately report them
to your salesperson. He might have another vehicle in mind that could suit you better.
ELIMINATE NUANCES
There are probably certain things you dislike about your current vehicle. Some may be
minor, but there might be issues that really get under your skin. Buying a new car is your
chance to get exactly what you want.
Before your test drive, create a list of things you wish you could change on your current
vehicle. Here are a few things you might want to consider:
• Accessibility: Is the new vehicle easy to get in and out of? Are the seats comfortable
enough for long road trips?
• How are the features? Is the stereo’s sound sufficient? If you’re searching for high-tech
features, are they present? Is the navigation system easy to use?
• Heat and AC: Are the temperature controls and the amount of hot and cold air produced
sufficient? Preferences differ, so be sure your new vehicle is a good fit.
TEST COMPARABLE MODELS
If you have a certain model of vehicle in mind (SUV, pickup, sedan), do yourself a favor
and test drive a few comparable models from different manufacturers. Most manufacturers will
have exclusive features. You might find the perfect vehicle from a company you may not have
considered before.
It’s Your
Summer Of
Adventure!
Hit The
Road!
Wauna Credit Union says
HAVE FUN NOW!
With an Affordable Loan
on a new Motorcycle,
RV, Boat, or other
Sport Vehicle!
BUYING A CAR? We offer 2 ways to do it:
Get Pre-Approved!
Go Straight to the Auto Dealer
Added Buying Power!
Convenient!
Know your budget, payment,
and term before you shop!
Finance through Wauna Credit
Union right at the Auto Dealer,
it’s called “Indirect Lending”.
Save on Loan Coverage such as
GAP & Mechanical Breakdown
Protection!
Plus, we offer insurance too!
for
Vacation!
Take a Wauna CU
VISA Rewards or
Platinum Credit Card
with you & save big!
We strive give you the best loan
we can, no matter which way
you get to your new car!
Wauna Credit Union membership is open
to anyone who lives, works, attends
school or worships in Clatsop, Columbia
and western Washington County in OR,
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waunafcu.org
800-773-3236