A new vehicle may include the latest technology, updated safety features and a manufacturer’s warranty. However, new vehicles generally have a higher purchase price and may lose value more quickly during the first few years.
Should you get preapproved for an auto loan before shopping?
An auto loan preapproval can help you understand how much you may be able to borrow before you begin shopping.
Getting preapproved may help you:
- Establish a realistic vehicle price range
- Estimate your potential monthly payment
- Compare Michigan First financing with a dealership offer
- Focus on vehicles that fit your budget
- Negotiate with financing already arranged
A preapproval is based on the information available at the time of your application and remains subject to its stated conditions, vehicle eligibility and final loan approval.
How long can you finance a car?
Michigan First offers eligible auto loan terms of up to 84 months. The term available to you will depend on factors such as the vehicle, amount financed and your credit qualifications.
A longer repayment term may lower your required monthly payment, but it generally increases the total amount of interest paid. It may also cause you to owe more than the vehicle is worth for a longer period.
A shorter term typically produces a higher monthly payment but may reduce your overall borrowing cost.
When comparing your options, consider:
- The interest rate
- The required monthly payment
- The length of the loan
- The total amount of interest
- How long you plan to keep the vehicle
Auto Loan Refinancing
Refinancing replaces your existing auto loan with a new loan. Michigan First may be able to refinance an eligible car, truck, SUV or van loan currently held by another lender.
Depending on the rate and term available, refinancing may help you:
- Lower your interest rate
- Reduce your required monthly payment
- Shorten or extend your repayment term
- Reduce your remaining interest expense
- Move your auto loan to Michigan First
A lower monthly payment does not always mean a lower overall cost. Extending your repayment term may reduce the payment while increasing the total interest paid.
Compare your current rate, remaining balance and payoff date with the complete terms of the new loan before deciding whether to refinance.
Protect your vehicle and auto loan
Michigan First offers optional products that may provide additional financial protection after you purchase your vehicle.
GAP Insurance
If your financed vehicle is stolen or declared a total loss, your auto insurance settlement may be less than the amount you still owe on the loan.
Guaranteed Asset Protection, or GAP, may help cover some or all of the eligible difference, subject to the coverage’s terms, limitations and exclusions. GAP does not replace comprehensive or collision insurance.
Vehicle Breakdown Coverage
Vehicle Breakdown Coverage may help pay for certain covered mechanical and electrical repairs after the original manufacturer’s warranty expires.
Available coverage, deductibles, repairs and exclusions vary by plan and vehicle.
Loan Debt Protection
Loan Debt Protection may cancel or temporarily suspend an eligible loan balance or payment following certain covered events, such as death, disability or involuntary unemployment.
Benefits are subject to the selected coverage and all applicable terms, conditions and exclusions.
Vehicle loans made simple.
Prepare for every mile ahead.
Online Learning
Build a personalized learning playlist
Online learning modules built to help you reach your financial goals.
Virtual Seminars
Learn more about credit
Understanding the breakdown of your credit score is a necessary step in your financial journey.
Flexible financing for your needs.
Explore loan options for planned purchases, unexpected expenses and debt consolidation.
Personal Loans