--- title: Tips for Financing Your First Car description: With auto financing, your driving dreams can be a reality. If you’ve never financed a vehicle, use these tips to find the right loan and hit the road. image: https://rmcu.net/hubfs/RMCU-Tips-for-Financing-Your-First-Car-blog-Header.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/tips-for-financing-your-first-car#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/tips-for-financing-your-first-car#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [Loans](https://rmcu.net/blog/topic/loans) # Tips for Financing Your First Car Read Time **2 mins** | Written by: Rocky Mountain Credit Union [mailto:?subject=Tips%20for%20Financing%20Your%20First%20Car&body=https%3A%2F%2Frmcu.net%2Fblog%2Ftips-for-financing-your-first-car](mailto:?subject=Tips%20for%20Financing%20Your%20First%20Car&body=https%3A%2F%2Frmcu.net%2Fblog%2Ftips-for-financing-your-first-car) ## Think ahead  Check your credit score ahead of time, think about your monthly budget, and scope out the kind of car you’re looking for before you start test driving. Your credit score will impact the auto loan you qualify for, as will your income. The same goes for picking out your new vehicle. Spend time researching features, options, and various makes and models.    ![Woman at a car dealership. ](https://rmcu.net/hs-fs/hubfs/RMCU-Tips-for-Financing-Your-First-Car-blog-2.jpg?width=2894&height=1929&name=RMCU-Tips-for-Financing-Your-First-Car-blog-2.jpg) ## Do the math Sure, you have the vehicle's sticker price and the price you negotiate at the dealer to think about. But your loan will cost you some money too. Take the monthly payment of your loan and multiply it by the number of months you’ll pay. The difference between that number and the sales price of your car is generally what you’ll pay in interest. Essentially, you want to find the loan with the lowest interest rate and the shortest term you can afford since that will reduce your interest costs. But take the time to pull out your calculator and figure out the actual price of your car when you factor in all the extra costs, insurance, and interest.    ## Save up your down payment A 20% down payment will save you money in the long run since that lower principal reduces the amount you pay interest on. A higher down payment also decreases your loan-to-value ratio, which lenders look at when considering financing. If you can’t save a 20% down payment before you need to buy the car, don’t panic. It’s still possible to find reasonable rates and great deals on an auto loan without it. But the more you can put down, the less you’ll spend over the length of your loan.    ![Young woman driving her first car. ](https://rmcu.net/hs-fs/hubfs/RMCU-Tips-for-Financing-Your-First-Car-blog-3.jpg?width=2894&height=1929&name=RMCU-Tips-for-Financing-Your-First-Car-blog-3.jpg) ## Get your quotes before you shop Before you head to the dealer and fall in love with your new ride on a test drive, shop around for loans. Your credit union is a great place to start because interest rates tend to be lower at member-owned institutions like RMCU. But no matter where you wind up financing, you want to round up some loan options before you go to the dealer. While car dealers offer financing options, you never want to go into car shopping unprepared. The way to get the best rate is to compare before you’re ready to buy.    See how your financial institution can help you get into the driver’s seat of your dream car and [fill out an auto loan application](https://blog.rmcu.net/rmcu-auto-loans-2022) with RMCU. If you’re not a member yet, joining and enjoying all the benefits of financing your next car purchase through a credit union is simple.  ##### Rocky Mountain Credit Union Share the Love [mailto:?subject=Tips%20for%20Financing%20Your%20First%20Car&body=https%3A%2F%2Frmcu.net%2Fblog%2Ftips-for-financing-your-first-car](mailto:?subject=Tips%20for%20Financing%20Your%20First%20Car&body=https%3A%2F%2Frmcu.net%2Fblog%2Ftips-for-financing-your-first-car) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/Campaigns/Vehicle%20Loans/auto-financing-dealership-vs-credit-union.jpg?width=700&name=auto-financing-dealership-vs-credit-union.jpg) Loans ### [Auto Financing Dealership vs. Credit Union](https://rmcu.net/blog/auto-financing-dealership-vs-credit-union) Buying a car can present a financing challenge with the option to either finance your purchase throu... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/RMCU_6%20Tips%20to%20Rebuild%20Your%20Financial%20Health%20After%20Unemployment_1.jpg?width=700&name=RMCU_6%20Tips%20to%20Rebuild%20Your%20Financial%20Health%20After%20Unemployment_1.jpg) Financial Literacy ### [6 Tips to Rebuild Your Financial Health After Unemployment](https://rmcu.net/blog/6-tips-to-rebuild-your-financial-health-after-unemployment) Reentering the workforce is a good time to look at your finances and see how you can start rebuildin... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/RMCU_Best-financial-advice_Blog_Images-1.jpg?width=700&name=RMCU_Best-financial-advice_Blog_Images-1.jpg) Financial Literacy ### [The Best Financial Advice We've Ever Received](https://rmcu.net/blog/financial-advice) What’s the best financial advice you’ve received? We posed this question to our staff at Rocky Mount... 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