Car Finance Options for Ohio University Staff & Students

Financing a vehicle is not a one size fits all process.

Depending on your specific needs and preferences, the car buying journey involves many variables and choices. From buying new or used, calculating payments with down payments to solidifying auto loan terms, it’s important to make a well-informed decision.

Car Finance Options In Athens, OH

Knowing your options allows you to make an educated choice regarding your auto financing.

Keep reading to learn about the many car finance options in Athens, OH.

New vs. Used Car

When considering purchasing a vehicle, you can buy a new, used, or certified pre-owned car.

New Vehicle

A new vehicle has no driving history so you can feel more confident in its reliability, performance, and maintenance history.

You will often qualify for lower interest rates with a newer car. Your vehicle will likely remain under a manufacturer's warranty for the first few years of the car loan, if not the full duration depending on your terms.

On the other hand, new cars sell for top dollar, so you can expect to pay more for the purchase of a new vehicle. However, it will depreciate quickly within the first three years.

Pre-Owned Vehicle

A certified pre-owned vehicle is one step below a new car.

Pre-owned vehicles are generally later models that have undergone a detailed, multi-point inspection and reconditioning process, including a manufacturer's warranty. A certified pre-owned car gives you many of the benefits of having a new car with a lower price point.

Used Vehicle

Purchasing a used vehicle is the most popular option.

This choice allows you to buy an excellent car without the high sticker price of a new vehicle. There will be more cars in a variety of price points if you opt for a used car.

However, a used car doesn't have the more guaranteed reliability of a new car or even a certified pre-owned vehicle. That's why it's essential that you do your due diligence to ensure you're making the best choice when you purchase a used car.

Length of Loan

When you go through car finance options, you can decide the duration of your loan. Loans typically range from three to eight years, with a five-year average.

• If you opt for a shorter loan, you will pay more per month; however, you will pay less in interest.
• If you choose a longer loan, you will pay less per month, but you will pay more in interest over the length of the loan.

Another consideration is the warranty on your car. If you're paying on your vehicle after the warranty expires and it needs repairs, you might struggle to continue making payments while trying to get your vehicle fixed.

Loan, Lease or Refinance

There are a variety of financing options for you, depending on your preferences. You might prefer to get a traditional auto loan, refinance your current loan, or take out a lease.

Getting a loan is a popular option. It's through this process that you borrow the money to purchase your vehicle and pay interest on the amount of the loan. At the end of the loan, the car is yours to keep.

If you already have a loan, you can refinance it to change your loan terms by going through the financing process again. This car finance option might be beneficial if your original loan has a high-interest rate and your credit has improved, allowing you to qualify for a lower rate. It can also be helpful if average interest rates have decreased overall.

Leasing is another option which is similar to renting an apartment. You can agree to lease a vehicle for a set term, generally two to three years. At the end of the lease, you can take out a loan to purchase the car, purchase a different vehicle, or lease a new car.

To Co-sign or Not To Co-sign

A cosigner is financially responsible for fulfilling the auto loan requirements with you.

You might want to consider having a cosigner if your credit history or income doesn't allow you to qualify for a car loan or you only qualify for less than optimal terms.

Save Money With a Trade In or Downpayment

If you're like most people, you want to save money on your monthly auto loan payment. There are a few ways to do this.

The first option is to trade in a vehicle.

When you trade in your car, it will have positive equity or negative equity. If it has positive equity, you owe less on it than it's worth. The difference decreases the amount of your new auto loan.

If your vehicle has negative equity because you owe more than it's worth, you can pay the difference in cash or roll what you owe into a new loan which will increase the amount you pay each month.

Another option is to make a down payment. You can get a loan that doesn't require a down payment or one that makes you pay a minimum amount. The more money you put down on your loan, the less you will have to finance and lower your monthly payments will be.

Comprehensive Car Finance Options in Athens, OH

The auto finance industry is vast, and while there are many options and resources available nationwide, and via the internet, there are a plethora of car finance options in Athens, OH as well.

OUCU is a not-for-profit credit union offering students and staff members top-notch products and services to meet their financial needs and budgets.

Our auto loan interest rates start as low as 6.45% APR with no origination fee, no dealer document fees, and no prepayment penalty. We also offer a convenient skip-a-pay option for those times when you need to prioritize other financial matters in your life without hurting your credit.

We’d love to be your top car finance option in Athens, OH.

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