5 Steps to Ace Your Next Car Purchase

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5 Steps to Help You Purchase Your Next Car

Buying Your Next Car.

If it’s time to start thinking about buying your next new or used car, make sure you do a little homework before you visit the dealer. These 5 Easy Steps to Buying Your Next Car will help you save time and money when you’re ready to purchase.

1. Find the best car for your needs.

First, pinpoint your absolute “must-haves” for the vehicle. Do you need a fuel-efficient car to drive 60 miles to and from work each day? Does the car need to accommodate 4 kids and your spouse? Will you be towing a camper? Make a list of your needs and then make a list of the extras you might want.

2. Determine monthly payments you can afford.

Next, determine your all-in purchase price and the maximum monthly car payment you can afford. Use this quick and easy Car Loan Calculator to help. Most financial experts suggest spending no more than 15% of your take-home pay on your car payment.

What about a longer loan repayment term to decrease the loan payment?

Extending the financing term by 6-12 months will decrease the monthly payment to a more affordable amount, but you will also be paying for the vehicle for a longer timeperiod. Who doesn’t want a lower monthly payment? Of course, we all do…but extended financing terms also mean that you’re more likely to pay for car repairs while you’re still paying for the loan. If you must extend the financing term, consider Mechanical Breakdown Protection and GAP insurance to help control your future out-of-pocket expenses.

3. Consider the full costs of ownership.

The monthly loan payment isn’t the only expense you’ll have with a car. Be sure to consider the following items when considering different vehicles:

  • Length of manufacturer’s warranty – the longer the warranty, the better. Once the warranty expires, you’ll have to pay for needed repairs out-of-pocket.
  • Costs for regular maintenance – oil changes, brakes, tires, etc.  Large trucks, SUVs and luxury vehicles will carry higher costs for standard maintenance.
  • Annual fuel costs – Consider the vehicle’s MPG (Miles per gallon) rating and whether the vehicle takes Regular 87 octane or Premium 93 octane gas. Annual fuel costs can differ widely from one vehicle to the next.
  • Insurance coverage – The insurance premiums for sports cars are usually much higher than on 4-door family sedans. Check with an insurance agent to find the monthly or annual insurance costs for vehicles you are seriously considering.

These items will vary from one car to another and could make a significant difference in your overall cost of ownership.

4. Take a Test Drive.

After you’ve narrowed down your list of vehicles that will suit your needs and your budget, now it’s time to have some fun — test drive the vehicles. Why? Because a vehicle with a great warranty, price and low cost of ownership could turn out to be the most uncomfortable, cramped and least satisfying to drive.

If possible, drive the car on roads that are similar to those you take every day. Note the vehicle’s acceleration, brake feel, comfort and if the radio controls, heat/ac and windshield wipers are intuitive and easy to use.

5. Find the Best Loan.

Researching your car loan is just as important as researching your next car. You should check financing options at your credit union and the car dealership. Keep in mind that the best deal may not always be just about the loan rate. If you want GAP and Mechanical Breakdown Protection, be sure to compare these costs as they are usually financed as part of the loan. Dealerships are known to charge hundreds to thousands more for GAP and Mechanical Breakdown Protection than your friendly, neighborhood credit union. Remember, COPFCU is a not-for-profit cooperative owned by you with the goal of improving your financial life – not charging you thousands over market.

You’re Ready to Go!

Hopefully you’ve found these 5 Easy Steps to Buying Your Next Car useful. If you’d like more information on the car buying process, check out the COPFCU Car Buying Guide.

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Queensgate Branch Temporarily Closed

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Queensgate Branch Will Reopen on Friday, 4/7

Updated 4/6/2023 at 2:00pm

The Queensgate Branch will reopen for normal business hours on Friday, April 7th. Our team looks forward to seeing you.

Queensgate Branch is Temporarily Closed

The Queensgate Branch has sustained damage due to the inclement weather of Wednesday, April 5th. At this time, the Queensgate Branch will be closed until further notice. Blue Ash and Colerain Branches will be open.

The Queensgate Branch will remain closed while we assess the damage and work to bring the location back to safe operation.

For In-Person Transactions in Queensgate & Blue Ash

While the Queensgate Branch is closed, please use this Shared Branch for in-person deposits and withdrawals: Kemba Credit Union, 1119 W. 8th Street, Cincinnati, OH 45203. Hours for this shared branch are Monday – Friday from 8:30am to 5:00pm.

All Systems Remain Operational

All credit union systems remain operational including:

  • Online & mobile banking
  • Phone systems including bank-by-phone
  • ATM networks
  • Debit & credit cards

Stay Informed Through Social Media & Email

We will continue to communicate updates on the status of the Queensgate branch through email and our social media channels including Facebook, Instagram and Twitter. We encourage your to follow these channels.

As always, we appreciate you and your continued loyalty and support of the credit union. Resuming operations to serve you is our highest priority and our team will be working diligently to restore service at the Queensgate Branch.

Your Funds Are Safe At COPFCU

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Your Funds Are Safe at COPFCU

Your Funds Are Safe And Federally Insured

In light of the bank failures recently reported in the media, we wanted to reassure you that COPFCU is in a strong financial position with healthy capital and that your funds are safe and federally insured.

The operations of your hometown credit union could not be more different from the banks that failed. We do not serve tech start-ups or venture capitalists. We serve public servants and their families in the Greater Cincinnati Area. We invest our funds in YOU – by providing home loans, car loans or any other loan you may need to fulfill your dreams and live your best life. We also purchase conservative investments backed by the federal government. These investments stabilize our income through both rising-rate and decreasing-rate environments. We perform a variety of “what if” tests on our portfolio to ensure that the credit union can withstand changes in the market. Credit union management meets regularly to review our portfolio, the results of these tests and to manage our risks.

Lastly, your funds are federally insured by the National Credit Union Administration (NCUA) up to $250,000 per accountholder, per ownership category and backed by the full faith and credit of the United States government. In fact, since the start of the credit union movement in 1934, no federally insured credit union member has lost any funds.

We encourage you to use these tools provided by NCUA to learn more.

Please feel free to contact us if you have questions about your accounts and federal NCUA Share Insurance.

As always, thank you for your continued loyalty and support. We look forward to serving the needs of your family for many years to come.

Kathy Haas

President/CEO

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Tax Refund Money Moves

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Tax Refund Money Moves

It’s tax refund time! Before you hit the “Buy Now” button on Amazon, take a deep breath and consider splitting up your tax refund to improve your life and happiness long-term. Here are 4 Tax Refund Money Moves to help maximize your refund in 2023.

1. First, Think About Fun.

We just mentioned not blowing your entire refund on Amazon, and we stick by that. But you work hard for your money and you should be able to spend a portion of your refund on something fun! Plus, allocating funds for fun right up front makes it easier to spend the remainder of your refund on other categories.

A weekend getaway with your family, a new TV for movie night or a night out with friends makes life just a little bit sweeter.

Recommended Amount: 10%-15% of your refund.

2. Next, Pay Down Debt.

Yes, we had to say it. If you have high-rate credit card debt or other debt, using a large portion of your refund to pay it down will save you hundreds, if not thousands, in the long run. In addition to easing your financial burden, paying down debt also has a positive effect on your mental health, greatly reducing financial stress and anxiety.

Recommended Amount: 50% – 60% of your refund.

3. Prepare for the Unexpected.

Life happens, and when it does it’s usually inconvenient and expensive. Saving a portion of your refund to create an Emergency Fund will ease the burden when faced with an unexpected car repair or medical expense.

Having funds set aside for these events also keeps you from getting further into debt. This is because you’re not using credit cards or other loans to pay for these unexpected expenses.

Recommended Amount: 15% of your refund.

4. Invest for Your Future.

Consider investing a portion of your refund in the stock market. Here’s why: If you invest just $350 from each tax refund for the next 5 years in a mutual fund or other stock that earns a conservative 6% average yearly return, your $1,750 ($350 x 5) would total an estimated $2,560 at the end of 5 years – that’s  $810 more!* Do the same for 10 years and the estimated return jumps to $5,516 — $2,016 more.**

The point is that investing even small amounts in the stock market could yield significant returns over time. Unfortunately, you can’t earn this rate of return in a Savings, Certificate or Money Market Account today.

While there is risk to investing in any stock, the positive returns have substantially outweighed the losses.

Recommended Amount: 10% of your refund.

What is a HELOC?

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What is a Home Equity Line of Credit?

A home equity line of credit (HELOC) is a type of loan that allows you to borrow money against the equity in your home. Equity is the difference between the value of your home and the amount you owe on your mortgage. With a HELOC, you can borrow money as needed up to a certain limit, and you only pay interest on the money you use.

How Much Equity Do I Have in My Home?

There are two ways to figure out how much equity you have in your home:

  1. Appraised value minus the outstanding mortgage balance.
    For example, let’s say you bought a home 10 years ago and the remaining balance of your mortgage is $150,000. You have an appraisal completed on your home to determine its current market value. The appraisal value of your home comes back at $325,000. Your available equity is $175,000.

    Special note: Even though your available equity is $175,000, your maximum HELOC limit will be less than this amount. That’s because most lenders will only provide a HELOC up to a maximum of 80% of the current market or appraised value.
  1. Loan-to-value ratio (LTV).
    You can also calculate the equity in your home using the loan-to-value ratio (LTV). The LTV is an active way of determining how much of your home’s value is financed by debt. To calculate the LTV, divide the outstanding balance of your mortgage by the appraised value of your home.

It’s worth noting that equity can fluctuate over time based on changes in the market value of your home and the repayment of your mortgage. Regularly assessing your home’s equity can help you make informed decisions about refinancing, borrowing against your home, or selling it in the future.

3 Benefits of a HELOC.

  1. Lower Risk Loan. A HELOC is one of the lowest-risk loans available on the market because it is secured by the available equity in your home. As a result, the interest rate charged for a HELOC is significantly less than rates for other loan types.
  2. Interest Rates. HELOCs typically have lower interest rates than other types of loans because they are secured by your home.
  3. Tax Benefits. The interest you pay on a HELOC may be tax-deductible if you are using the funds to improve the property on which the loan is taken.**

Bottom Line.

Your HELOC utilizes your current home as collateral for the loan at typically more attractive interest rates. They’re best for longer-term projects in which you’ll need flexibility to borrow additional funds as you go and repay over time.

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What is MSRP?

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Understanding Car Manufacturer’s Suggested Retail Price

What Is MSRP?

When shopping for a new car, you may have come across the term “MSRP”, short for Manufacturer’s Suggested Retail Price. MSRP is the price you see on the window sticker for a new vehicle. It serves as the suggested price that the manufacturer gives to the dealer for selling the vehicle.

4 Items Not included In The MSRP.

The MSRP includes the base price of the vehicle along with the standard equipment and any manufacturer-installed options or packages. However, it may not include other expenses related to the vehicle including:

  1. Destination Charge. This is the cost the dealership must pay the manufacturer for the delivery of the vehicle to the lot.
  2. Dealer-Installed Options. Any options installed after the vehicle arrived at the dealership will not be reflected in the MSRP. In these cases, you will see an additional window sticker noting what these options are, the cost and the final cost of the vehicle.
  3. Taxes, Fees and Registration. The MSRP does not include sales tax, registration and title fees. The state mandates these fees, so you cannot negotiate these costs down. Typically, they add these fees to the vehicle cost and finance them in the loan.
  4. Dealership Fees. Dealerships may include other charges like document preparation fees, dealer preparation fees and advertising fees. These fees may be negotiated down.

Is Paying Above MSRP The New Normal?

Traditionally, MSRP has been the starting point for price negotiations between you and the salesperson. However, with vehicle shortages and low inventory, this is no longer the case. If a vehicle is in high demand or you are seeking a vehicle with a rare trim package, you may have to pay MSRP to get the vehicle you want. In these cases, it may be your best option to place an order for the vehicle. Additionally, we highly encourage you to find a reputable dealership that doesn’t charge more than MSRP, especially if you are ordering the vehicle.

The Future Of Car Manufacturing And Buying.

Some industry experts speculate that manufacturers and dealerships may transition to “order-only production” as a result of the changing market dynamics. This means they would have to place an order for the specific vehicle you want and wait for it to be produced. The supply chain and production disruptions caused by COVID-19 have demonstrated to auto manufacturers that they can produce fewer vehicles and sell them for a higher price, resulting in increased profits. However, this production model can significantly lessens your ability to negotiate and receive incentives from the manufacturer.

Conclusion.

MSRP is an essential term to understand when purchasing a car. It serves as a suggested price set by the manufacturer, providing a baseline for pricing and transparency in the automotive market. While the MSRP acts as a starting point, it does not represent the final sale price, as factors like negotiation, incentives, and discounts can affect the actual amount paid. By understanding the MSRP, buyers can navigate the car buying process more confidently, compare prices, and make informed choices that align with their budget.

Find out what you can afford before you go shopping by calculating your Auto Loan Payment.

Get Behind The Wheel Of Your Next Favorite Vehicle.

Whether you’re purchasing a new or used car, refinancing your vehicle loan from another lender or buying out your lease, we have the loan option that’s right for you.

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Tips to Prevent Fraud on Your Account

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Tips to Prevent Checking Account Fraud & How to Catch it Early

Many Americans are experiencing fraud on their checking accounts due to a recent spike in mail-related check fraud across the United States. Stolen mail is one of the fastest and easiest ways for criminals to gain access to personal information and use it to commit checking account fraud and identity theft.

Here are some tips to prevent checking account fraud, and how to catch it early if it happens to you.

Review your checking account activity daily. 

You can easily do this from your phone or computer using Online or Mobile Banking. By actively monitoring your accounts you’ll be able to catch the fraud as soon as it begins and can prevent more funds from being taken. Banks and credit unions will replace stolen funds if notified in a timely manner and investigation procedures are followed. Stolen identities can also be part of the problem and are often harder to fix if caught too late.

Go paperless. 

Consider all the bank statements, credit card payments, checks or other documents containing personal information that you send in the mail. This makes it easier than ever for thieves to steal your personal information and commit fraud on your account or even steal your identity. Whenever possible, go paperless. Arrange for all inbound payments to be direct deposited into your checking account including paychecks, government benefits, reimbursements, insurance adjustments and so on.

Use Bill Pay or pay your bills using a credit card.

Consider sending monetary gifts for birthdays or graduations electronically using a peer-to-peer payment app, such as Venmo or Zelle. Most peer-to-peer payment apps are free for personal money exchanges. If you don’t want to use an online bill-pay service, take your mail to the post office directly and use an in-branch drop box.

Enhance your security.

Get a security camera or a camera-equipped doorbell, such as Ring or Google Nest, and have it monitor your mailbox. Mailbox Alarm Sensors are also becoming increasingly popular in the US as mail theft continues to rise.

Other options for keeping your mail safe:

  • Use the postal service’s Hold Mail option when traveling to prevent mail from piling up in your mailbox.
  • Sign up for Informed Delivery through the U.S. Postal Service, which captures and sends you a daily preview of your mail, so you know if anything is missing.

If you suspect fraud on your account, please contact us immediately.