5 Things to Look for in an Auto Loan

Do you have your eye on a shiny new vehicle that would look just right in your driveway, a more energy-efficient vehicle, or an additional car for a new driver?

Purchasing a car or truck is a big decision with many variables, First Choice has outlined 5 things to look for in an auto loan—and the corresponding ways that we assist you through the car-buying process.

1. Terms and Financing

The loan comes down to the dollars, ultimately. The term of your loan could be anywhere from 3 years to 7 years. The longer the term, the lower the monthly payments, but the more you will end up paying in interest over time. Also, beware: if your loan is longer than the amount of time you keep the car, you may end upside down (owe more on the loan than the value of the car) when you are ready to move on to your next vehicle.

2. Pre-Approval

Getting pre-approved for a car loan is better than setting foot in a dealership. Wit is a good idea to separate obtaining your financing and the purchase of your car. They are both big unique decisions that will help keep you in control. We make it easy for you by offering online applications through our 24/7 lending center. Apply now through First Choice.

3. Specialty Options: Young Adult Loans

Be aware of the specialty loans at First Choice Credit Union, including our Young Adult car loans. This program looks at your situation a little differently because we know young adults’ stage in life shouldn’t keep them from owning their own vehicle. Young people can develop another level of financial independence while being backed by the knowledge that the credit union has their best interests in mind.

4. Solid Advice: Auto Advisors

At First Choice Credit Union we offer Auto Advisors, which is the friend you always wished you could take with you when you go to the dealership. If you would like to simplify the car buying process and have an expert assist you in auto purchase negotiations, please call our office at 561-649-7133 or visit them online.

Check out our Auto Loan Resource Center for information, links, and more assistance in the car buying process.

5. Go with a Credit Union

Working with a Credit Union offers you the same services as a bank, but with the added benefits of a member-based relationship and sense of community. Should you run into trouble making payments, your Credit Union is more likely to work with you and find solutions than a far-away bank.


Car loans are one of the many ways that we support and serve our members in their financial needs, and we look forward to helping you purchase your next vehicle.

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!