Putting more money down on your purchase reduces how much you owe and decreases the risk associated with your loan. As a result, making a sizeable down payment on the purchase could result in a lower interest rate.

Most car buyers will experience a temporary reduction in their credit score after taking out an auto loan. Buying a new or used car with a loan can raise your credit score over the life of the loan, as long as you make on-time monthly loan payments.

Shopping for auto loan rates within a 14-day period will ensure that multiple inquiries are counted as only one inquiry or excluded entirely by some scoring systems, according to the credit bureau Experian. However, this can still cause a small reduction in credit score. Accepting a loan offer may cause another small score dip. A credit score will rise as on-time monthly loan payments are made.

Paying off your car loan early may hurt your credit score, but the effects are usually only temporary. Some lenders charge a loan prepayment penalty, so ask your lender if there are prepayment fees, before you pay off your car loan early. CU SoCal does not charge a prepayment penalty on any loan.

Paying off a car loan early can save you money in interest you’d otherwise be paying. The sooner you pay off your car loan, the more money you’ll have each month. Not skipping any payments and making one large extra payment every year can help you pay off your loan early. Before you pay off your loan, ask your lender if they charge a pre-payment penalty.

Buying a new car feels great and you’ll have the peace of mind of driving a reliable vehicle. The benefits of buying a new car include the latest safety and fuel efficiency technologies. However, all these technological goodies come at cost. That’s why many individuals purchase certified pre-owned cars instead, as they can be less expensive.

Refinancing a car loan can save your money if you can get a lower interest rate. The first step of auto refinancing is to talk to different lenders about rates and loan terms. CU SoCal saves Members money every day through vehicle loan refinancing, and will drop your rate from another lender by at least 2%. If approved for a loan refinance, the remaining amount you owe on your first loan will be paid off and you will start making payments on the new loan. A small drop in credit score is likely, but most scores increase as on-time monthly loan repayments are made.

With a thorough plan in place, saving up for a car isn’t as complicated as you might think. Some actions you can take include creating a budget and a savings and purchase timeline, deciding on the type and make of car, and calculating an approximate monthly payment are all good ways to start saving.

Refinancing a car loan provides several advantages, including a lower interest rate, a lower monthly payment, and more. However, be aware that some financial institutions will charge prepayment or other fees for refinancing your car loan. And, if your new loan has a longer term, you may end up paying more for your car than if you just stuck with the original lender. CU SoCal will lower your vehicle loan rate from another lender by at least 2%. Learn more.

1. The Annual Percentage Rate=APR disclosed reflect CU SoCal’s best available rate and includes a 0.50% discount when you have at least $750 monthly direct deposit to your CU SoCal Checking Account and an additional 0.25% discount as a Rewards+ Loyalty Program Member. Your APR may vary based on applicant’s creditworthiness, loan amount, and loan term. If discount requirements are not met or are discontinued, the APR will be higher. Financing is available up to 120% of Kelley Blue Book retail value, inclusive of tax, license, and optional CU SoCal GAP and Mechanical Repair Coverage, subject to credit approval and underwriting guidelines. Vehicles less than two years old with up to 10,000 miles are classified as new; vehicles less than ten years old with up to 120,000 miles are classified as preowned. CU SoCal does not finance salvaged title or Lemon Law Buyback vehicles. Payment factor is based on maximum term and calculated per $1,000 financed. Direct deposit discount is applied once at time of loan funding. Rewards+ discount applied within 30 days of verification of applicant meeting qualification requirements. Discounts remain in effect for the life of the loan unless qualifying conditions are discontinued. For loans with a 90-day payment deferment, interest accrues from the funding date. Not all applicants will qualify. Additional terms and conditions may apply; consult a CU SoCal representative for details. Rate subject to change without notice.