🚗 Auto Loans Made Easy: What to Know Before You Buy a Car

Buying a car is exciting — but it can also be overwhelming. Between dealership jargon, financing options, and hidden costs, it's easy to feel lost. But don’t worry — with the right knowledge (and support from your credit union), you can drive away feeling confident and in control.

💳 What Is an Auto Loan?

An auto loan is a type of financing that helps you purchase a new or used vehicle. You borrow a set amount from a lender (like your credit union) and repay it over time with interest.

Key terms to know:

• Principal – The amount you borrow
• Interest rate – The cost of borrowing
• Term – How long you’ll take to repay the loan (usually 36–72 months)
• Down payment – Money you pay upfront, which lowers your loan amount and may also get you a lower interest rate

✅ Before You Shop: 3 Smart Steps

1. Know Your Budget

Set a realistic number — and stick to it. Consider:

• Monthly payment (use a calculator!)
• Car insurance
• Maintenance and fuel costs
• Down payment amount

💡 Pro tip: Don’t forget taxes, title, and fees.

2. Check Your Credit Score

Your credit score affects your interest rate. A better score = better rates and lower payments.

If your score needs work, talk to us — we’ll help you understand your options or build your credit first.

3. Get Pre-Approved

Getting pre-approved through your credit union means:

• You’ll know exactly how much you can borrow
• You can shop like a cash buyer
• You may qualify for lower rates than at a dealership

🧠 Pre-approval gives you power at the negotiating table.

🚘 Understanding Auto Loan Terms

Here’s what to consider when comparing loans:

• Loan term: Longer terms = lower monthly payments, but more interest over time
• APR: Compare annual percentage rates, not just monthly payments
• New vs. Used: Used vehicles may have higher rates but lower purchase prices

💡 Smart Buying Tips

• Don't just focus on monthly payments. Look at the total cost of the loan.
• Avoid add-ons you don’t need. GAP insurance, extended warranties, etc. may be optional or cheaper through your credit union.
• Bring someone with you. A second opinion never hurts.

🏦 Why Finance Through Fleur De Lis FCU?

We’re not just here to approve your loan — we’re here to guide you through the process. Our members enjoy:

• Competitive rates (often lower than dealerships)
• No pressure, local service
• Fast pre-approvals
• Automatic payment discounts

👋 Ready to Get Started?

Whether you're buying your first car or upgrading to something new, we’re here to help you drive with confidence.

🔗 Apply online or talk to a loan specialist today.

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