First Choice Credit Union Auto Loan and Car Buying Tips

Purchasing a vehicle is an exciting moment, but can also be confusing and daunting. First Choice Credit Union is here to advise you on the car-buying steps and help you make a purchase decision that is both financially smart and gets you the vehicle you want.

1. Determine Your Budget

A good rule of thumb is that you should only take on new debt when your monthly spending is less than your monthly income. A new loan shouldn’t take away from your plans to save or from your existing commitments. If you have the room in your budget for a monthly car payment, that will inform your overall car-buying budget. Not sure what your monthly finances will allow? Our member services staff can assist you.

When calculating your overall budget, keep in mind that your monthly payment will be determined by a) vehicle price, including any added warranties, b) down payment, c) term of the loan, and d) APR (annual percentage rate). The larger the down payment, the smaller the loan, which will give you more flexibility and a more comfortable monthly payment.

2. Check your Credit Report

The terms of your loan will be influenced by your credit score, so it may be a good idea to check your credit report for any discrepancies you might need to dispute.

3. Direct Lending vs. Dealership Financing

Buyers have several choices when it comes to securing an auto loan. Dealership financing makes use of the dealership’s relationships with financial institutions, and won’t necessarily be the best deal. Direct lending involves getting your loan directly from your bank or credit union, and First Choice is proud to specialize in low-cost auto loans. We pride ourselves on having the lowest car loans in Palm Beach County, with our Fair Lending Program in place to determine your best rate based on your personal history.

4. Meet with an Auto Advisor

One of the newer services that First Choice offers our members is the Auto Advisor program—we’re the friend you wish you had with you as you enter the dealership. Your assigned advisor will help you simplify the car-buying process and be your expert advice, from determining fair market value for your trade-in to helping you complete your final purchase.

5. Get Pre-Approved

Getting pre-approved from First Choice Credit Union will help you feel more confident when you’re shopping and beginning to negotiate price. We can issue a sight draft which you can bring on the lot with you. Visit our low-cost Auto Loan Resource Center for more information.

6. Shop Around

Use the many car finding sites and apps to give you a good understanding of fair prices for the vehicle you’re looking for. Visit a few dealerships to see their inventory, test drive, and compare certain features. It’s a good idea to bring along a shopping companion to help you weigh your options and talk through your decision.

7. Consider Warranties and Maintenance Plans

Extended warranties and maintenance plans add to the total cost of the vehicle but can save you a bit of money in the long run (which is also money you’d be paying out of pocket unexpectedly for repairs and maintenance, versus having it rolled into your loan in most cases). Talk to the dealership staff and our Auto Advisors to know what to expect.

8. Read the Fine Print

You’re almost there! Read all parts of the auto contract carefully. If you have questions about wording, ask them, and make sure all of the coverage you’re opting into is listed out. If you see something you didn’t agree to or don’t understand, ask. For a quick road map to the parts of an auto insurance contract, follow along with this guide.



We’re happy to help our members through the car-buying experience. Contact us to get started!