Our First Time Car Buyer program is designed to help credit union members 18 years and older secure an auto loan without a co-borrower. When considering your application, our lending specialist will not hold a lack of credit history against you.
With a First Time Car Buyer loan, you can borrow up to $15,000 for your vehicle. Check out our five tips for buying your first car.
MemberFocus is more than just a lender, we’re your financial partner. We offer free CARFAX vehicle history reports and NADA price guides. Our team will help make sure you’ve found a good vehicle at the right price.
Once you've established yourself with MemberFocus, getting approved for a First Time Car Buyer loan is easy! You just need to meet these conditions:
- Be a first time buyer 18 or older
- Be a member of our credit union for at least six months prior to application
- Have six months employment at your current job
- Have your payroll direct deposited to your credit union account; six months of deposits required.**
- Have a valid driver's license
**If you have been a member of our credit union for over one year, we will waive the direct deposit requirement.
Our First Time Car Buyer loan is available in (3) different terms. The term is simply how many months you'll take to pay back the loan in full. Each term features its own interest rate:
- 36 month loan at 4.70% APR*
- 48 month loan at 7.20% APR*
- 60 month loan at 8.20% APR*
A longer term can help lower your monthly payments and increase your car buying budget.
To determine how much car you can afford, you'll need a good understanding of your monthly budget. One guideline you can try is:
Car payment = 10% of gross monthly income
For example, if you earn $30,000/year before taxes, your gross monthly income is $2,500. 10% of $2,500 = $250/month car payment.
Once you know what you can afford each month, you can figure out how much to spend on a car. See the next section!
Now that you know how much you can afford to spend on your monthly car payment (see the previous section!), you're ready to set your total car buying budget.
Using this calculator, follow these steps:
- Select the "amount" option at the top
- Then plug in your "monthly payment" amount
- Plug in the interest rate (see above)
- Plug in the term(see above)
The calculator will then tell you the "loan amount." This number is the total amount you can afford to spend on a car.
Notice how the longer the term you select, the larger the loan you car afford or the lower your monthly payments becomes.
When you call, our lending staff will be happy to help you calculate your car buying budget and ideal monthly payments. We can even help you apply for a First Time Car Buyer loan over the phone.
*APR = Annual Percentage Rate. Rates are valid as of 03/01/2019 - 03/31/2019 and are subject to change without notice. Rates shown reflect a 0.25% discount for automatic payments. All loans are subject to credit approval and underwriting standards. Payment examples listed above are for demonstrative purposes and are not guaranteed. First Time Car Buyer loan rates are determined by loan term rather than credit worthiness. Ask for complete details.