If you’re considering applying to your federal credit union for a car loan, it’s best to have a general understanding of the loan requirements before signing on the dotted line. Hawaii County Employees Federal Credit Union has been providing quality car loans and other financial products to their Hilo clientele for over 80 years. Below, they’ve outlined what you should know about financing your car.

What You Need to Know About Your New Car Loan

Understand the Difference a Loan Term Will Make

Much like a mortgage, a car loan is usually issued to the borrower at a fixed interest rate for a term ranging from 36 to 84 months. What is important to note is that the longer your loan term, the more interest you will pay on the life of the loan. For instance, most used car loans are close to 36 months. However, with the costs of new automobiles skyrocketing, terms of up to 84 months are now not uncommon. Be sure to do the math on your new auto purchase before agreeing to a new loan.

Know Your Credit Score Before Shopping

Your credit score will directly impact the interest rate offers you receive from different lenders. The higher your credit score, the lower an interest rate you will likely receive. If you have a lower score, work with lenders who are willing to give you a fair interest rate so you can rebuild credit. Luckily, loan specials from Hawaii County Employees Federal Credit Union apply no matter what!

How to Keep Extra Costs Down

Car ‘extras,’ such as title, sales tax, and registration fees can add thousands to the overall cost of your new vehicle. Be prepared to pay for these items with cash, or have a solid down payment prepared before you finance your automobile.

If you’re shopping for savings on a car loan, it’s best to speak with a qualified banking representative. The professional team at Hawaii County Employees Federal Credit Union specialize best interest rates for their clients. Call them today at (808) 935-2969 or visit their website for more information.