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Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
BEFORE YOU BUY A NEW CAR: 3 Things You Need to Know
There are many things to consider before purchasing ANY car, but a NEW car might spark particular questions. There are pros and cons to buying new cars, just as there are pros and cons to buying used cars. You should figure out a few things before you buy a new car.
Ask Yourself Why Before You Buy A New Car
First off, when purchasing any vehicle, ask yourself “Why am I buying this car?” Is it for daily use, will you need a lot of storage space, seating space? Make sure the makes and models you narrow your search down to are practical reflections of how you will use the car.
You may love the look of a larger vehicle, but if you don’t have five children, you might not need that much space and that particular car may not be right for your daily commute and errands.
How Does It Fit For You
After you’ve considered the personal aspects of which car to buy, move on to the less subjective parts of the process:
1. Depreciation
Most cars depreciate at about 15% per year. With new cars, there is a 20% depreciation rate as soon as you drive off the lot. You want to consider this before you decide to buy a new car, especially if you can’t put much money down as a down payment. Chances are you’ll be upside down on your car loan almost immediately if you’re financing the entire cost.
2. Cost-to-own
Also, consider the true cost to own the car you’re eyeing. These costs include insurance, fuel, maintenance, and more. Maintenance costs vary by manufacturer and model. Do your research—some manufacturers have better reputations than others. Some new cars even come with “free” maintenance plans for the first couple of years or for a certain number of miles.
3. How much can you afford?
Don’t guide yourself solely by what the dealership is willing to lend you. And, don’t be blindsided by an attractive low monthly payment—oftentimes tied to a super-long loan term. Consider all aspects of financing—the total amount you are going to end up paying for that vehicle when it’s all said and done. Before you buy a new car, that’s what matters.
Options and Resources
Mid Oregon is presenting a free webinar on Tuesday, October 19, called “Get the Best Car Deal”. Register for the 7 p.m. webinar. Learn more about other Mid Oregon financial education webinars.
Are you in the market for a car? In today’s environment, is it more important than ever to make a good purchase decision.
Find out how to save money and remain in control of your car deal. Learn how to determine how much car you can afford, deal with dealers, negotiate the best car price, benefit from buying used and figure out finance options.
For more information on finding the right new car for you, researching options and available local inventory, take a look at our AutoSmart webpage today!
Read other articles about car buying and auto loans.
And then visit Mid Oregon Credit Union before you even step on the lot. As a not-for-profit financial cooperative, we can approve you for an auto loan that fits your circumstances—and your budget. We won’t put you into a loan you can’t afford, and we’re happy to explain everything to you away from the high-pressure of the dealership. If you have a trade-in, we can help you determine a value for that, too. Or, call us at (541) 382-1795 or email to beheard@midoregon.com.
Keeping Your First Credit in Good Standing
Credit is a very tempting risk. As soon as you have all that available money at your disposal, all kinds of impulses can take hold of you. Stories abound of people getting numerous credit cards and going on spending sprees. Do you really think about keeping your first credit in good standing?
The Credit Hangover
Only after the bills come to their mailboxes do they feel the hangover. If it’s bad enough, they can feel it for many, many years. If you are one of them, you can be denied credit in the future, and you can even lose employment opportunities. You can be denied other loans, such as car and home loans. Such are the costs of abusing credit. With this in mind, here are some simple tips for wise use of that little plastic card:
Simple Tips
- Never think of credit as free money. Credit is not free money. You have to pay it back, often with interest.
- Understand what your credit history is made of. Your credit history is made up of several factors. It is 35% payment history, 30% amount owed, 15% length of your credit history, 10% new credit, and 10% type of credit used. As you can see, payment history factors in the most. A detailed explanation of each of these factors can be found at Experian.com.
- Be patient. Building good credit takes years. It is a lifestyle made up of responsible money habits. Give it time.
- Use your card regularly. Using your credit card regularly helps build up your credit history.
- Pay your balance fully each month. As you use your card regularly, it is wise to charge small amounts and pay them off each month. That way, you build up a payment history, and you also avoid interest charges.
- Pay your bills on time. The largest component of your credit score is payment history.
- Don’t use too much credit. Avoid this temptation. If you can use cash instead, do that.
- Don’t use it frivolously. Again, charge only small amounts.
- Use it for things you already have money for. This will help ensure that you pay your balance in full each month. But more importantly, it is an easy way to help you build a credit record.
Looking at Credit Differently
To quote the great comedian Bob Hope, “A bank is a place that will lend you money if you can prove that you don’t need it.” This paradox is resolved when you see it from the bank’s point of view. It loans you money out of its vault so that it can earn money in return. It’s a business. Those who do not need credit are therefore the most likely to be able to pay the bank back.
Other Resources
- Mid Oregon has resources to help you manage your credit. Here are a few:
- Mid Oregon’s online banking tool, Credit Savvy.
- Mid Oregon’s recent “Managing Your Credit” webinar. Watch the video. View the presentation slides.
- Read Mid Oregon’s Blog articles about credit .
- Mid Oregon branch locations to talk to a loan officer about your credit.
- Order your credit report, free
Contact us today to learn more, and to get help keeping your first credit in good standing.
Tame your Back-to-School Spending in Four Easy Steps
Follow these tips before hitting the stores to save on classroom supplies
By Jean Chatzky* It’s mind-boggling how quickly the most basic items on your back-to-school shopping list can add up to big bucks. A new survey shows parents are expected to spend more than ever before on new clothes, classroom supplies and the electronics many students want (and need) in case remote learning is required again during the 2021-2022 school year.
Families with children in elementary, middle and high school plan to spend about $849 on back-to-school items on average, which is about $59 more than last year, according to a report from the National Retail Federation and Prosper Insights & Analytics. Total back-to-school spending is expected to reach $37.1 billion, which is a big jump from $33.9 billion last year and an all-time high in the survey’s history.
College students and their families also are projected to set spending records, the survey found. Total back-to-college outlays are expected to be about $1,200 per student for a total of $71 billion, up from $67.7 billion in 2020.
Maybe you’re feeling like you want to spend more — to celebrate the fact that we’re (hopefully) moving out of the pandemic. Or because the consecutive rounds of stimulus dollars made you feel flush. But maybe…just maybe…you’re not feeling that way. With a little extra effort, families can find ways to save on the items students need to set them up for a successful school year.
Know what you need
Many if not most schools post supply lists by grade level on their websites. Before you shop, find the list, review it and take a photo with your smartphone for easy access when shopping. Because so many students became remote learners last year, many of the items required this year may be the same ones you bought back in 2020 that were barely touched. Items such as backpacks, lunch boxes and those cute notebooks with clever sayings are likely still good as new.
Take stock of previously purchased school supplies and clothes
With an eye to using what’s already paid for, get four or five clear storage bins or old shoe boxes. Then ask your children to go to their rooms and bring back all of the pencils, pens and highlighters they have stashed in drawers, under the bed and anywhere else school supplies lurk. Place them in a box. While they are busy searching, check behind the couch cushions, the junk drawer, your desk or home office for more writing instruments you don’t need. They go in the box, too. Now do the same for folders, composition notebooks, loose leaf paper and art supplies. You may never need to buy pens again.
Before buying new clothes, take an inventory in your child’s closet to see if school outfits and shoes still fit. If not, and you have the time and energy, you could sell them on sites such as Facebook Marketplace or your school’s PTA social media pages to earn extra cash for new clothes.
Use price trackers and promo codes for deals on laptops and tablets
One of the most sought-after back-to-school items this year are laptop computers, with more than half of the families in the National Retail Federation survey reporting they plan to purchase them. Before you buy, check out price-tracking websites and apps, such as Slickdeals, Honey and Brad’s Deals, that can send subscribers email alerts when a product they want goes on sale. Many price trackers also come with automatic coupons or rebate features in addition to the price alerts.
Check with your school about software and approved devices
Many school districts offer free or deeply discounted software programs and laptop computers for students. It’s also a good idea to check with your school or district before purchasing a new device for classroom use. Many public and private schools only allow students to use electronic tablets and laptops provided by the district and won’t allow outside computers on campus.
*This guest article is from the “Your Money Blog” in Mid Oregon’s Digital Banking Credit Savvy resource. It is made possible by SavvyMoney. “Tame your Back-to-School Spending in Four Easy Steps” by Jean Chatzky with Casandra Andrews was published in August 2021.