Car Shopping

Five Ways to Turbo Charge Your Car Shopping Process

More than 23 percent of Ohio consumers are considering purchasing a vehicle this year, and 83 percent are more likely to finance the purchase than pay cash, according to a consumer survey conducted by the Ohio Credit Union League.
When asked what factors respondents considered when vehicle shopping, 67 percent said monthly payment is the biggest influence on their decision. For 61 percent of participants, gas mileage is the most important issue, while 47 percent said consumer reviews are important in their decision-making process. Other aspects considered when shopping for a vehicle included a safety rating, vehicle’s history report, and general aesthetics.

It’s no surprise gas mileage is at the top of consumers’ minds. According to Time Magazine’s Everyday Money, after a slight gas-tax increase (to 31.3 cents per gallon) took effect Jan. 1, the average cost of a gallon of gas in the Buckeye State is $2.03. Up from $1.49 a year ago. The national average for gas sits at $2.29 per gallon, according to AAA. That’s 29 cents more than the national average at this time last year.

In addition to the cost at the pump, here are a few tips when choosing a new vehicle that will have the least effect on your wallet.

• Use your tax refund. The more money you’re able to put down on a car, the smaller the loan and ultimately, the less you pay in interest over the life of the loan.

• Get pre-approved. Before car shopping, get pre-approved. It’s fast, free and online at ProMedica FCU. Pre-approval will give you more power to negotiate on the purchase price of the vehicle. Pre-approval also tells you how much you can afford and what type of monthly payment you will have.

• Budget ahead. As a rule-of-thumb, do not allow a monthly payment for a vehicle to exceed 12 to 16 percent of your gross monthly income.

• Consider the total cost of ownership. When car shopping, consider the cost of insurance and maintenance. Also, keep in mind that a high-end vehicle typically costs more to insure and maintain.

• Check with ProMedica FCU. Rather than purchasing items like a warranty and Guaranteed Asset Protection (GAP) coverage at the dealership, check with a credit union. PFCU offers these items at a lower cost than what you would find at a dealership. 

To learn more about how PFCU can help you afford life, stop into one of our four locations or call 419-479-4040.

*Pre-approval based on individual credit worthiness using ProMedica FCU risk based criteria. Pre-approvals are valid for 30 days. Not all applicants will be pre-approved.

Car Value

These Vehicles Have the Best Resale Value

A great deal on a new vehicle will only stay great if the operating costs remain competitive, and the resale value is strong at trade-in time. A new report from Kelley Blue Book examines the latter.
KBB recently ranked vehicles on resale value, and awarded top honors to the best 10.

The company’s annual Best Resale Value Awards recognizes vehicles for their projected retained value through the initial five-year ownership period.

In general, trucks and SUVs dominate in this category. Vehicles in these categories simply hold onto their value due to ever rising demand. But all are not equal in this respect.

Toyota earns top honors for Best Resale Value Brand, a designation it last received in 2014, claiming four 2017 model-year winners.

Porsche captures the Best Resale Value Luxury Brand title for the first time ever with three model winners.

Other notable automakers among the list of 2017 Best Resale Value Award winners in 22 different categories include General Motors with an impressive seven models taking honors for its Chevrolet and GMC brands, Honda with four model winners, and Subaru, last year’s best brand winner, with four 2017 Best Resale Value Award wins.

Lexus, last year’s best luxury brand award winner, has four models winning this year’s awards and is the only other luxury brand on the list in addition to Porsche.

Here are the winners:
2017 Best Resale Value: by Vehicle Category
Subcompact Car: Honda Fit
Electric Vehicle: Chevrolet Bolt
EVCompact Car: Subaru ImprezaSubcompact
SUV/Crossover: Honda HR-V
Sporty Compact Car: Subaru WRX
Compact SUV/Crossover: Jeep Wrangler
Mid-Size Car: Subaru Legacy
Mid-Size SUV/Crossover: Toyota 4Runner
Full-Size Car: Nissan Maxima
Full-Size SUV/Crossover: Chevrolet Suburban
Entry-Level Luxury Car: Lexus RC
Luxury Compact SUV/Crossover: Porsche Macan
Luxury Car: Lexus GS
Luxury Mid-Size SUV/Crossover: Lexus RX
High-End Luxury Car: Porsche Panamera
Luxury Full-Size SUV/Crossover: Lexus LX
Sports Car: Porsche 718 Cayman
Mid-Size Pickup Truck: Toyota Tacoma
High Performance Car: Ford Mustang Shelby
Full-Size Pickup Truck: Chevrolet Silverado HD
Hybrid/Alternative Energy Car: Honda Accord Hybrid
Minivan: Toyota Sienna

2017 Best Resale Value: Top 10 Cars
Chevrolet Colorado
Jeep Wrangler
Chevrolet Silverado
Subaru WRX
GMC Canyon
Toyota 4Runner
GMC Sierra
Toyota Tacoma
Honda Ridgeline
Toyota Tundra
For your auto financing needs, think ProMedica FCU. We are your Loan Connection.