Is now a good time to finance a vehicle?
Blog Post
2 min read
Is now a good time to finance a vehicle—or should you wait? It’s a question a lot of people are asking right now, and the honest answer is...it depends.
Let’s talk about a few factors to consider when financing a new ride. That way, when it’s time to lock in, you’ll feel confident about your decision—no matter what you choose to drive (or ride, or sail).
Get familiar with Annual Percentage Rates (APRs)
Believe it or not, there’s more to a vehicle loan than just a monthly payment. There’s actually something just as important working behind the scenes: your annual percentage rate (APR). This is what determines how much you’ll actually pay over the life of your loan, not just each month. Even a slightly lower APR can save you hundreds (or even thousands) in the long run. That’s why timing matters. When lenders offer special APR promotions, it can be a great opportunity to lock in a lower rate and make your money go further. In fact, SAFE is offering limited time special APRs right now!
Know your budget (before you shop)
It’s easy to fall in love with a vehicle first and think about the numbers later. Flip that. Start with what you’re comfortable spending each month, then work backward to find your price range. If you need help running the numbers, the convenient calculators in SAFE's learning center can help.
It’s easy to fall in love with a vehicle first and think about the numbers later. Flip that. Start with what you’re comfortable spending each month, then work backward to find your price range. If you need help running the numbers, the convenient calculators in SAFE's learning center can help.
Check your credit ahead of time
Your credit score plays a major role in the rate you’re offered. A quick check can help you know what to expect and give you a chance to improve it if needed. If you’re a SAFE online banking member, you can see your FICO score for free. It updates every three months, so you can keep track of your progress.
Your credit score plays a major role in the rate you’re offered. A quick check can help you know what to expect and give you a chance to improve it if needed. If you’re a SAFE online banking member, you can see your FICO score for free. It updates every three months, so you can keep track of your progress.
Get pre-approved
Pre-approval gives you a clear picture of your loan terms upfront. It also puts you in a stronger position when you’re ready to buy, whether it’s a car, motorcycle, boat, or RV.
Pre-approval gives you a clear picture of your loan terms upfront. It also puts you in a stronger position when you’re ready to buy, whether it’s a car, motorcycle, boat, or RV.
Think beyond the payment
If you need a lower monthly payment, and you’re planning to keep your vehicle long-term, stretching out your loan term might be the best option for you. SAFE offers financing up to 84 months on qualifying loans if needed. However, if you have a little more room in your budget, shortening your loan term could mean paying less interest over time. It’s all about determining what’s most important to you and striking the right balance.
If you need a lower monthly payment, and you’re planning to keep your vehicle long-term, stretching out your loan term might be the best option for you. SAFE offers financing up to 84 months on qualifying loans if needed. However, if you have a little more room in your budget, shortening your loan term could mean paying less interest over time. It’s all about determining what’s most important to you and striking the right balance.
At the end of the day, financing a vehicle involves multiple decisions that all fit together to meet your specific needs and budget. If that sounds complicated, there’s no need to worry. SAFE has loan experts who make the process super quick and easy. Plus, now is a great time to explore your options since SAFE is offering limited-time special APRs designed to help you save BIG!
Give us a call, stop by your nearest SAFE branch, or start your application online today. And remember: the right loan at SAFE doesn’t just get you moving… it helps you stay on track financially, too!