//OUTSMARTING A CAR LOAN

There are two ways to buy a car. The first is to pay cash ... yeah, right. The second, which is the most common, is to get a loan. But not all car loans are created equal. As a matter of fact, there are many things to consider when getting your first car loan. Here are a few:

• Put down as much money as possible. This is a no-brainer. The more money you pay up front, the less money you need to pay each month. A good rule is 20% of the cost of the car. For example, if you want to buy a $10,000 car, you should save at least $2,000 for your down payment.
• Take the shortest loan term you can handle. This is basically how many months you want to make payments. Although adding months will decrease the amount you pay each month, in the long run, you end up paying more money. If you can, try to get a term of 48 months or less. The monthly payments may be a little bit more, but you’ll save money on interest charges.
• Use rebates if available. You may have heard commercials advertising rebates on select cars. If you’re offered a rebate, take it and finance your car with the Credit Union. Don’t be tempted to go out and buy a new iPod with your rebate. Use the extra money as a part of your down payment. It’s a great way to get free money & lower your monthly payments.

These are just a few ways to get the best loan possible. For more ways to get a smart loan, always call your Credit Union.