How Can You Prepare for a Car Purchase?

As new model vehicles are becoming available for purchase, are you thinking about purchasing a new car? Whether you want a brand-new 2027 model or are looking for last year’s leftovers, there are some considerations to keep in mind as you dive into the possibilities of your next car purchase.

Find A Payment That Fits Your Budget

The best way to prepare yourself for a car loan you can afford is to consider your monthly budget. If you don’t have a budget just yet, you don’t have to make it complicated. Divide your spending into three categories: bills, savings, and then everything else. How much you save every month plays a big role in determining what sort of auto loan is affordable for you. If you find yourself saving less than you’d like, is there anything in the “everything else” category you could cut back on? Think eating out, expensive gym memberships or subscriptions you aren’t actually using.

Check out our free calculator provided by our partner, Banzai, to help you determine how expensive a car you can afford!

Search For a Car When You Don’t Need It

Purchasing a car at a great price will be easiest when you start looking before you need one. It puts you in a place of power at the negotiating table with a dealer when you have the option to walk away from the purchase. So, when your vehicle starts requiring expensive repairs, or you otherwise know it’s time for that next car, it’s a good idea to start looking for a great deal.

Know What You Want Before Going to the Dealer

Doing some research before going to the dealer will put a stop on the dealer’s attempts to talk you into something more expensive. These days, dealers post their inventory online, which is often updated daily so you know exactly what is on the lot. You can use websites like KBB or Edmunds to double-check the value of the vehicles you’re looking at and negotiate based on that.

Educators Vehicle Solutions^® Vehicle Advisors are here for our members to help navigate finding that perfect car at the lowest price before you head to the dealership. They even offer free CarFax reports on used cars so you know what you’re buying. Give them a call at 262.884.6675, email them or start with our Find My Car widget!

Know Your Credit Score Before Applying for a Loan

Your credit score is one of the single most important pieces of information that will determine your monthly payment. A high credit score means you receive a lower interest rate, and a lower credit score means you receive a higher interest rate. If you use Banzai’s auto loan calculator, you can simulate what a lower and higher rate can look like.

If you want to improve your credit score before your next auto loan, give us a call and we will work with you to go through options tailored for your specific financial situation.

Get Pre-Approved

A final piece of strength in negotiation is to receive a pre-approval from your financial institution. Just like a mortgage, this is an agreed upon amount of money that your financial is willing to lend you for a new vehicle. The dealer can see what you’re able to purchase, and it can assist in negotiation.

Aim For a Shorter-Term Loan (If You Can)

Choosing a shorter loan term can help you save hundreds or even thousands of dollars in interest over the life of your loan. While your monthly payment may be higher, you could pay off your loan sooner and save more in the long run. Make sure to look at your budget to find a loan term that works comfortably for you.

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