5 Ways to Save Money on Your Used Car Loan
Buying a used car is a smart way to save money upfront—but how you finance that vehicle can have just as much impact on your budget. Making informed choices about your loan can save you hundreds, or even thousands, over time.
Whether you’re shopping for a reliable ride or refinancing your current loan, here are some easy, actionable tips to save money on your used car loan.
1. Know Your Credit Score Before You Shop
1. Know Your Credit Score Before You ShopYour credit score plays a major role in the interest rate you’ll qualify for. The higher your score, the lower your rate—and the more you save. Check your score ahead of time, and if it’s lower than you’d like, we’re here to help – call, stop in or complete a contact us form online. We have a variety of resources to help you establish and build your credit score.
2. Get Preapproved to Strengthen Your Bargaining Power
Preapproval gives you a clear idea of your budget and helps you avoid dealer markups. You’ll walk in knowing exactly what you can afford—and may even get a better deal. To get preapproved, complete a loan application on our website or schedule an appointment to discuss your options.
3. Finance Through Your Credit Union—Not the Dealer
Dealership financing can be convenient, but it’s not always the most cost-effective. Your local credit union, like First Class Community Credit Union, often offers more favorable rates and terms. Don’t be afraid to shop around for the best deal—even if it means requesting an outside lender while at the dealership.
4. Consider Mechanical Repair Coverage
Used cars can be a great value, but they also carry the risk of unexpected repairs. Mechanical repair coverage can help protect your finances by covering the cost of major repairs. While many dealerships offer MRC options, First Class Community Credit Union is typically able to offer this coverage at a lower cost when it’s financed in-house through us—providing added value and peace of mind.
5. Refinance If You’re Already Paying Too Much
If you already have a used car loan, refinancing could lower your interest rate, reduce your monthly payment, or shorten your loan term. It’s worth reviewing your loan periodically—especially if your credit score has improved since you first financed the car.
Let’s Hit the Road—Affordably
Saving money on your used car loan is all about making informed decisions—and having the right team on your side. At First Class Community Credit Union, we make the process fast, simple, and stress-free.
– Competitive rates
– Quick approvals
– Local service you can trust
Apply online
Visit our Des Moines or West Des Moines locations
Call us anytime at 1-800-392-7122