Whether you’re ready to traverse the country in a motorhome or simply need a better car for your daily commute, buying a vehicle is never a small expense. Fortunately, there are many financing options available to make this purchase more affordable. With a car loan from Estacado, you can buy a new set of wheels and gradually pay off the balance by making small monthly payments. If you’re new to this method of payment, here are a few reasons why car financing is a good idea.

What Are the Benefits of RV & Car Loans?

1. Access to Later Models    

When you’re trying to save money on a vehicle purchase, you might think buying used is the best option. However, buying a used car or RV will often mean getting an older, well-used model that’s seen better days. With a loan, you’ll be able to expand your budget and choose from a wider selection of vehicles—including those that are equipped with the latest features in comfort, safety, and performance.

2. Reduced Vehicle Costs

Another reason you should finance a new car or RV is to have peace of mind that you’re getting the vehicle in its best condition. Used cars, on the other hand, can contain a lot of hidden problems that may have you overspending on fuel or future car repairs. These expenses may end up costing much more than what you’d pay for a car loan.  

3. Builds Credit

Unlike other types of loans—such as mortgages or student loans—car and RV financing is relatively accessible to those with low or no credit. As you pay off the balance, your credit score will improve, and in turn, expand your future borrowing abilities.  

4. Cuts Out Collateral Requirements

Many personal loans require some form of collateral—an asset that the lender could seize to recoup their costs if you stop making payments. Car loans, however, don’t present this obstacle. Instead, the vehicle you purchase will serve as collateral. As such, if you default on payments, the lender could repossess the car.

5. Simpler Budgeting

The terms of a car or RV loan are fairly flexible, depending on the requirements of your lender. Before you purchase your vehicle, you’ll be able to structure the loan to determine how much you’ll have to pay each month and how long you’ll be able to make payments. With this foresight, you’ll know exactly what your costs will be and if they will fit your current circumstances.

When you want to get on the road and avoid overpaying, turn to Estacado Federal Credit Union in Hobbs, NM, for affordable RV and car loan options. Dedicated to stimulating financial health in the community, this credit union provides ATV, RV, and car financing at competitively low rates. If you’re currently paying off a vehicle, this institution may even help you refinance to reduce your monthly payments. To learn more about their fast and easy loans, visit this financial institution online. Call (575) 393-1596 with questions.