Buying your first car is an experience that comes with many questions. Which car to buy, financing options, and more! Our experts at iTHINK Financial have made it easy for you by reviewing the different options and sharing the advantages of buying your first car with a Credit Union!
For many first-time car buyers, financing is a potential option. While each first-time car buyer should first consult with a financial expert, such as a certified and licensed financial planner, before deciding on whether to finance or buy outright, those who have already determined that they would like to opt for financing through an auto loan for their first car, may wonder what their options are.
Credit unions can be wonderful—but it’s important to check if one can join! Membership requirements can vary between credit unions.
Credit Unions are required to establish a charter and, in it, a “field of membership.” This dictates who can join and which common bond members share. For example, a credit union may require that members live in a certain area, such as a city or town. That might be the community that the organization is aimed at assisting.
Other fields of membership requirements may hinge on places of employment, places of worship, or membership of another group. As such, you may need to ensure you’re eligible to join before joining a credit union.
What’s more, though credit unions can offer flexible rates, terms, and even lending requirements, first-time car buyers looking to secure financing through one will still need to consider many of the same factors as they would seeking financing through a traditional bank.
Among these, importantly, are one’s credit score and history, one’s debt-to-income ratio—which quantifies how much one is earning in relation to how much they owe in debts—the down payment amount, the rates and term or a potential loan, and one’s general budget and income.
These considerations aren’t just crucial for securing a loan; it’s also important to ensure that one is going
to be able to take on the potential financial burden of borrowing before they do.
The Next Step
Each borrower’s journey is different. Not all first-time car buyers may even want to finance their first automobile purchase. However, credit unions may offer a viable lending solution for those who have already discussed the matter with a financial expert, such as a licensed financial planner. Learn more about iTHINK Financial’s Vehicle Loan options and apply today!