By Chris McPherson, Certified Financial Counselor, BOND Community Federal Credit Union
Many of you may be thinking about a new car purchase. Especially this time of year; it’s a great time to get a fantastic deal on a new 2016 vehicle as dealerships make room for their 2017 products. One common caveat to purchasing a new car is depreciation; “As soon as I drive it off the lot, it’s lost so much value.”
Well sure; that’s the nature of most vehicles. However, most people keep cars they bought brand new for 10 years or longer – well past when the last payment was made. Used vehicles depreciate at the same rate; just not as quickly for the first year. However, you also miss out on the many perks of a new car: factory warranties, extended service plans complimentary with purchase, manufacturer deals, and better-overall financing terms. Plus, they have next-to-no miles and the condition is perfect. What you lose in depreciation could easily be made up with what you save in maintenance and repair costs for the first three years.
If you’re considering a new vehicle (or even a used one), give me a call or stop in and see me – even if you’re not a member. Let’s go over all your options; as your community’s not-for-profit credit union, we’re here to help you, not sell you something you don’t need. All our members are the owners here, and that makes all the difference when you’re looking for advice you trust. Every one of us at BOND – including our CEO – works for you.
One last thing: you may be thinking, “But I have poor credit…” Please don’t let your credit score hinder you from taking the step to talk to a financial advisor. Yes, your score is very important when it comes to financing terms and rates. However, I can help you with this. I’m also your financial counselor. Ignoring the problem, in this case, does not make it go away; in fact, it often makes it much worse. Your credit affects many other things: rental amounts and deposits, insurance, and even prospective employment. Don’t sell yourself short because you made a mistake in the past or because some company or individual ruined your credit before you ever had a chance. This especially applies to young people with no credit. Get started on the right foot with all the tools and education you’ll ever need to keep your score high and your future financial history strong.
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