Of the cars on the road, 107 million of them were paid for using loans. However, if you are in need of a new vehicle, you may wonder whether it makes more financial sense to put that money toward a new or pre-owned model. Here is some information from your not-for-profit Estacado FCU to help with your decision.

Benefits of Purchasing a New Car

Because new cars have a higher price tag, you will also pay more in interest. However, buyers with high credit scores are usually given more favorable rates. Additionally, these loans come with longer terms. 60 or 72 months is common. This allows customers to spread the cost out with less impact on the monthly budget. Depending on the time of year or the model, you may also be privy to special rates or seasonal deals which are not often extended to used cars.

Benefits of Purchasing a Used Car

If you want to take out a smaller loan or have a challenged credit history, a used vehicle is your best option. With regular payments, you will own your car sooner than you would one that is new. Furthermore, preowned cars do not depreciate as quickly as current models, which lose value as soon as they’re taken off the lot.

Do you need a car loan in Hobbs, NM, and aren’t sure where to turn? Members may apply by phone or online. Estacado Federal Credit Union is here to help, whether you’re in search of a new or used vehicle. Their application process is made to be fast and efficient, so their members can get a decision immediately. Once approved, these experts will work to provide you with low-interest rates, no matter your credit history. If you’d like to speak with a friendly and knowledgeable representative today, feel free to email us at loans@estacadofcu.com or call (575) 393-1596. You can also apply online by visiting the website.