Car Buying

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Thinking Beyond the Test Drive

Buying a vehicle is one of the biggest financial decisions many people make, especially if it is your first time. Understanding the full cost of vehicle ownership can help prevent costly surprises and set you up for long-term success. A car is more than its sticker price. Monthly payments, insurance, maintenance, depreciation and future life changes all matter.

Before you start shopping, determine your budget and how long you want your payments to last.

If paying cash isn’t an option, getting pre-approved for a loan through your credit union is a smart first step. A pre-approval gives a clear picture of how much you may be able to borrow so you can shop with confidence and avoid shopping outside your price range. Down payment requirements vary by lender and depend on factors such as credit history, vehicle type, loan amount and LTV (loan-to-value). LTV compares the amount you’re borrowing to the vehicle’s actual market value. If the purchase price is higher than the value, you may need to make a larger down payment.  

Auto loans typically range from 60 to 72 months, though terms can be shorter or longer. Longer terms may lower your monthly payment but increase the total interest paid. A down payment can help reduce both your payment and overall interest costs.

Leasing is another option. Leasing often offers lower monthly payments but does not provide ownership or equity. Leases typically include mileage limits, customization restrictions, and upfront costs, while a loan allows you to build equity that can be used for a trade-in or future down payment.

The loan payment is just one part of the picture. Be sure to account for additional costs such as the title, registration, taxes, and any additional options you may choose, such as a Route 66 Extended Warranty and other vehicle protections offered by Ascentra.  

In addition: 

  • Fuel expenses can also add up, especially if you have a longer commute. 
  • If you are financing or leasing, insurance is required, including premiums and deductibles. To fully understand the cost of ownership, it’s important to request insurance quotes before buying. 
  • Maintenance and repairs are a key part of vehicle ownership. Routine services like oil changes, tires, and batteries add up, and unexpected repairs can happen. Planning ahead helps reduce stress. 
  • Consider how your life might change in the next five years, is the vehicle you’re considering big enough to grow into? Will it tow the boat or camper you hope to buy someday? We ask this because depreciation matters: many cars lose significant value early, and if you re-sell too early, you may owe more than the vehicle is worth, which is why used vehicles may offer better value. 

Always go for a test drive, check for recalls, review vehicle history reports and watch for rebuilt or salvage titles. Taking time to research helps protect your investment.

Buying a vehicle is about more than transportation. It is about choosing something that fits your budget, lifestyle, and future. Ascentra Credit Union is here to guide you every step of the way so you can drive forward with confidence. 

Before you head to the dealership, learn more about Ascentra's vehicle loan options or talk with our team to learn how we can help you establish a budget and get you pre-approved, giving you the confidence to be the negotiator. 

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Investing in Your Family's Future with 529 Plans

  • Apr 1, 2026
IA/IL College Savings Plans

Planning for a child or grandchild’s education is one of the strongest ways families can help them get started financially. 529 college savings plans offer a tax advantaged way for parents, grandparents, and other family members to save for education expenses, and can be a cornerstone of long term financial planning.

A 529 plan is a state sponsored savings account designed to help families invest for future education costs. Your contributions grow tax deferred, and withdrawals used for qualified education expenses are tax free at the federal level. This includes tuition, fees, books, supplies, and depending on the plan, certain apprenticeship and K-12 expenses.

Iowa offers the ISave 529 Plan, a college savings plan where contributions grow tax free and can be used for qualified education expenses. Iowa residents may also enjoy a state income tax deduction for contributions. Learn more and open an account at isave529.com.

Illinois families can choose between two Illinois 529 College Savings plans. These plans also offer tax deferred growth and, for Illinois taxpayers, a state income tax deduction. Bright Start is known as one of the nation’s highly rated 529 plans. Find plan details and links at illinoistreasurer.gov/college-savings.

How families benefit:

  • Tax advantages: Contributions may reduce your state taxable income in both Iowa and Illinois.
  • Flexible use: Funds can pay for college, vocational schools, and other qualified programs.
  • Family involvement: Parents and grandparents can contribute, creating a legacy of support.
  • Control: The account owner retains control of funds and can change the beneficiary if plans change.
Getting started is simple, and every contribution, no matter the size, can make a meaningful difference over time. By taking advantage of the tax benefits and flexibility 529 plans offer, families can build a strong foundation for future education expenses while easing the financial burden down the road.

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Investing in Your Family's Future with 529 Plans

  • Apr 1, 2026
IA/IL College Savings Plans

Planning for a child or grandchild’s education is one of the strongest ways families can help them get started financially. 529 college savings plans offer a tax advantaged way for parents, grandparents, and other family members to save for education expenses, and can be a cornerstone of long term financial planning.

A 529 plan is a state sponsored savings account designed to help families invest for future education costs. Your contributions grow tax deferred, and withdrawals used for qualified education expenses are tax free at the federal level. This includes tuition, fees, books, supplies, and depending on the plan, certain apprenticeship and K-12 expenses.

Iowa offers the ISave 529 Plan, a college savings plan where contributions grow tax free and can be used for qualified education expenses. Iowa residents may also enjoy a state income tax deduction for contributions. Learn more and open an account at isave529.com.

Illinois families can choose between two Illinois 529 College Savings plans. These plans also offer tax deferred growth and, for Illinois taxpayers, a state income tax deduction. Bright Start is known as one of the nation’s highly rated 529 plans. Find plan details and links at illinoistreasurer.gov/college-savings.

How families benefit:

  • Tax advantages: Contributions may reduce your state taxable income in both Iowa and Illinois.
  • Flexible use: Funds can pay for college, vocational schools, and other qualified programs.
  • Family involvement: Parents and grandparents can contribute, creating a legacy of support.
  • Control: The account owner retains control of funds and can change the beneficiary if plans change.
Getting started is simple, and every contribution, no matter the size, can make a meaningful difference over time. By taking advantage of the tax benefits and flexibility 529 plans offer, families can build a strong foundation for future education expenses while easing the financial burden down the road.