Updated: May 4, 2026
There’s nothing like that new car smell, shining paint, and all the latest features that come with a new car. However, the process leading up to the big moment of driving your car off the lot may seem intimidating. Whether you’re buying your first car or your fifth one, we’re here to help make the process as smooth as possible.
We asked Tracy, our Director of Lending, to share his tips and answer a few frequently asked questions when it comes to car buying.
Tracy: It can be, especially if you’re flexible on the make and model and can take advantage of manufacturer incentives or dealer discounts on in-stock vehicles. On the new-car side, inventory has been up overall, and incentives are available for some makes and models, creating opportunities to negotiate, especially on in-stock vehicles and leftover model-year inventory. At the same time, inventory and pricing can vary a lot by brand and vehicle type (for example, some hybrids and in-demand trims may be tighter and harder to discount).
On the used-car side, prices have been more stable, but when supply is low and demand is high, you may not have as much wiggle room on the price (for example, spring and tax-refund season can be especially competitive). If you’re trading in a vehicle, keep in mind that trade-in values can fluctuate by vehicle type, condition, and timing, so it’s a good idea to get multiple appraisals and compare offers. One of the best ways to know if now is the right time for you to buy is to get preapproved first and rate-shop. It’s important to focus on your total monthly cost (payment, insurance, fuel, and maintenance) before deciding whether to buy now or wait.
Tracy: Before you begin car shopping and have your heart set on a specific make and model, you'll need to take a realistic look at your finances. How much can you pay monthly towards your auto loan, while maintaining your current lifestyle and budget?
Most financial experts recommend allocating up to 20% of your budget for all car expenses. These expenses include auto loan payment, insurance, gas, and maintenance/repairs. Here's more information about budgeting if you're looking for extra tips.
Tracy: Yes, it matters! Your credit score reflects how much risk you pose in paying off debt. It helps us determine the interest rate you’ll pay to finance the car loan. If you have a higher credit score, you may be offered a lower interest rate. On the flip side, if you have a lower credit score, you may have a higher interest rate. A higher credit score indicates you’re likely to repay the loan. A lower credit score indicates a greater risk of failing to repay a loan or of missing or making late payments on the loan. With a poor credit score, you can expect to pay a higher interest rate, which can make your monthly payment higher.
Before you start shopping for a new car, review your credit report to see where you stand. If you need to improve your credit score, allow yourself some time to work on improving it before purchasing your car. You can get a free copy of your credit report from each major credit bureau (Experian, Equifax, and TransUnion) simply by visiting AnnualCreditReport.com.
Tracy: Our goal is to make it as easy as possible for you to drive away in your new car with a monthly payment you can afford.
Keep this in mind when you’re considering loan term options: with a longer loan term, your monthly payments are lower compared to a shorter loan term. However, if your budget allows for a higher monthly payment, you can get a shorter loan term, which will allow you to pay your car off sooner, and potentially save on the total amount of interest you’ll pay.
Tracy: Typically, a car dealership does not require a deposit to hold a car, but it can still be a smart move in certain situations. If the vehicle is in high demand, there are multiple buyers looking at the same vehicle, or if you want the dealer to reserve a specific vehicle for you, a deposit may be necessary. If the car has been sitting on the lot and supply is strong for that make/model, you may not need a deposit at all. Before making a deposit, make sure you are 100% ready to purchase and get the deposit terms in writing to ensure you're comfortable with everything.
Tracy: Ordering your car from the manufacturer, another car lot, or through online car sales remains a convenient option, but delivery can take up to six to eight weeks. When ordering a vehicle, make sure you verify the seller’s identity, read reviews or comments, obtain a detailed description and history for the car, and use secure payment methods. Consider and research any additional charges that may result from documentation, delivery, and other charges.
Tracy: Start by asking yourself a few questions, like: "What are my intentions for the car?" "How long do I plan to keep it before I purchase the next one?" "Would I save money over time by buying the car instead of leasing it?" If you intend to keep your car long-term and ownership is important to you, buying may be the best option. Your monthly payments may be higher, but you’ll save money in the long run because once the loan is paid off, the car belongs to you.
On the other hand, if you’re someone who likes to drive the latest car, travel less than 10,000 miles per year, and car ownership isn’t a significant factor for you, leasing may be an option to consider. Leasing may also be a good option for you if you want a lower monthly payment.
Tracy: We make the car-buying process simple and easy for you, so you can enjoy your new car without financial stress. If you're an AllSouth member, you can easily apply online through Online and Mobile Banking. For nonmembers, it's simple to open an account online, or if you prefer, you can visit any of our locations. Once you’ve applied, we’ll let you know if you’re pre-approved. You’ll then pick out your car, have the dealer send us the purchase order, and we’ll cut a check for you to take to the dealership.
We’ve also partnered with dealerships throughout South Carolina to offer you the convenience of getting AllSouth financing at the dealership.
When it comes to getting a car loan, there are never too many questions to ask. The more you know and the better prepared you are, the less intimidating and confusing the buying process can be. If you have additional questions or need assistance with getting started, our team members are happy to help walk you through the process.
Meet Tracy, our Director of Lending. Tracy has been with AllSouth for over 15 years. He leads a high-performing team of local loan officers to deliver personalized service and lending options to help our members achieve their goals.
Need more advice?
Check out Part 2 of our Common Car Buying Questions series.