First-Time Car Buyer? Here Are 4 Steps To Make Auto Financing Easy
Buying your first car is exciting and, with the right support, financing it doesn’t have to be stressful! You can drive away with confidence and keep your budget on track. Here are four smart steps to make the process simple and stress-free.
1. Know Your Budget
Before you fall in love with a car, set a realistic budget. A good rule of thumb: spend no more than 20% of your monthly income on your car payment, insurance, fuel, and maintenance combined.
Why it matters: Staying within this limit helps you avoid financial strain and leaves room for other priorities like savings and emergencies.
Pro tip: Use an online auto loan calculator to estimate your monthly payment before you shop.
2. Save For A Down Payment
The more you put down, the less you’ll need to borrow — and the lower your monthly payment will be. Aim for 20% down if possible. If that feels out of reach, start with 10% or whatever you can afford.
Why it matters: A solid down payment can help you qualify for better loan terms and reduce the total interest you’ll pay over time.
3. Check Your Credit
Your credit score plays a big role in the interest rate you’ll receive. Review your credit report early so you can correct any errors and understand where you stand.
• Good credit? You’ll likely qualify for lower rates.
• Limited or no credit? Ask about credit-builder programs designed to help you get approved and start building credit responsibly.
4. Research Your Ride
Don’t just shop for style, shop smart. Make a shortlist of vehicles that fit your needs and your budget. Check reliability ratings, fuel efficiency, and ownership costs like insurance and maintenance.
Pro tip: Make a list of features that matter most to you to help narrow down your search.
Hear BCU experts talk through the car buying process in this Life. Money. You.® Podcast episode!
Get Started
Financing your first car doesn’t have to be complicated. At BCU, we make it easy with competitive rates, flexible terms, and support for first-time buyers. Apply online today and cruise along with confidence.
Ready to experience the credit union difference? Become a member of BCU!
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About BCU: BCU is a not-for-profit, member-owned credit union that is fiercely dedicated to Empowering People To Discover Financial Freedom. With over $6B in assets, BCU is committed to providing a fast, easy, and secure banking experience along with extraordinary service to more than 360,000 members. The BCU field of membership includes employees and their families from Fortune 100 companies across the US and Puerto Rico. Membership is also open to individuals who live or work in Northern Illinois, Southern Wisconsin, and Puerto Rico, as well as subscribers of BCU’s wholly owned Credit Union Service Organization (CUSO), Life. Money. You.®. All BCU members enjoy lifetime access to financial services and well-being programs that inspire confidence through the brand promise “Here Today For Your Tomorrow.”
To learn more about how we can help you realize your financial dreams, visit BCU.org.
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