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Buying a Vehicle: Resources & Loans

Whether buying your next vehicle, shopping new or used, or navigating a private seller transaction, our resources simplify the search. Use our tools to calculate payments or connect with a loan officer.

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Shopping private marketplaces? Avoid the common pitfalls.

Navigating a private vehicle purchase requires a different strategy than walking onto a dealership. From handling the bill of sale to arranging a secure payment method, a little preparation goes a long way. Check out our seven tips to help your private purchase go smoothly.

Tips to Prepare Yourself

How does the auto loan process work?

Financing a vehicle typically follows four simple steps. Getting preapproved before you shop can help you understand your budget and make the buying process easier.

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1. Apply for a loan

Complete a loan application and provide information about your income, employment, and finances.

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2. Get approved

Get your preapproval, locking in your rate and maximum budget.

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3. Shop for your vehicle

Compare vehicles and choose one that fits your needs and your preapproved budget.

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4. Finalize your loan

Give the lender the purchase details, such as the VIN and purchase agreement, before completing the loan.

FAQs for buying a vehicle

How much you can afford depends on a variety of factors, but a general rule is to limit car payments to 10% of your take-home pay, keep total operating costs under 20% of net income, put down 20%, and finance for 48 months max. Use SELCO’s auto loan calculator to estimate your monthly payment and figure out how much will work for your budget.

Getting preapproved gives you a better idea of how much you can afford before you start shopping. It can help you set a realistic budget, compare financing options, and shop with confidence. Knowing your approved loan amount ahead of time may also make the buying process smoother once you've found the right vehicle.

Deciding between a dealership or private seller can be hard because both have advantages. Dealerships may offer a larger selection and additional protection, and private sellers can sometimes offer lower prices. No matter where you buy, research the vehicle, review its history with something like Carfax, and carefully inspect it before making a purchase. 

Yes, you can finance a vehicle from a private seller, and SELCO can help you with that process. Before purchasing, be sure to research the vehicle, review its history, and confirm the title is clear. We can explain any documentation needed to complete the purchase. Learn more about our vehicle loan options.

Guaranteed Asset Protection (GAP) helps cover the difference between what you owe on your auto loan and your vehicle's value if it's totaled or stolen and your insurance settlement doesn't cover the remaining balance. GAP protection may be worth getting if you are:

  •  Making a low down payment (less than 20% down).
  • Financing with a long-term loan (60 to 72+ months).
  • Trading in a vehicle with negative equity.

Learn more about GAP coverage.

Yes, you can refinance your vehicle loan to lower your monthly payment or pay off your debt faster. If interest rates are down or you've built stronger credit since purchasing the vehicle, refinancing allows you to replace your current loan contract with new, more favorable terms. Use our auto refinance calculator to see how much you could save.

Get started on your vehicle learning journey

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What to know before signing an auto loan

Make sure you understand your auto loan to make a more informed vehicle-buying decision. Learn key factors like loan terms, interest rates, monthly payments, and the total cost of financing before you move forward.

Learn & Shop Confidently
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Your first auto loan starts here

Purchasing your first vehicle is exciting, but understanding your financing options can feel overwhelming. Learn how first-time buyer auto loans work, what lenders look for, and steps you can take to prepare for the application process.

Discover First-Time Basics

Looking for more financial guidance?

Visit the SELCO Education Center to access interactive financial calculators, step-by-step guides for first-time homebuyers, strategies for saving money, and essential identity theft protection tips.

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