With tariffs on imported vehicles and parts expected to increase prices for both new and used vehicles, in addition to offering rates and terms that keep costs low, FPCCFCU is committed to helping members navigate the shifting auto loan landscape to make the best financial decisions possible.

If you’re shopping for a new vehicle, it’s important to be prepared and informed in order to keep as much money in your pocket as possible.

How will tariffs affect vehicle prices?

Analysts predict new tariffs will not only increase the price of many imported new vehicles and vehicles that use imported components, but consumers will also see a rise in prices for replacement parts. In addition, higher demand for used vehicles and a lack of availability is expected to drive up used vehicle prices.

How can I prepare to make my vehicle purchase?

With higher vehicle prices, you may need to apply for a longer loan term or make a larger down payment. At FPCCFCU, we can work within your budget with a wide range of flexible terms to ensure you get a monthly payment you can afford.

1. Determine how much you can afford. Our loan officers can work with you to understand how different terms will affect you total costs, and we also offer free consultations to review your finances and find the best loan option for your budget. You can also take advantage of our online loan calculators determine how much car you can afford.
2. Go to the dealership with buying power. As a member, you have access to our easy preapproval process. Not only will you be able to go to the dealership confident that you won't be offered a higher payment, but we will lock in your rate for 90 days — so even if federal interest rates rise, yours won't.

How can tariffs affect my current auto loan?

In addition to rising costs for new and used vehicles, car owners can expect to pay

• Higher insurance premiums
• Higher costs for repairs

While insurance and manufacturer warranties only cover so much, FPCCFCU offers several protection plans with the purpose of helping members avoid costly repairs and out-of-pocket expenses.

• Guaranteed Asset Protection¹: GAP insurance helps you pay off your auto loan if your vehicle is totaled or stolen by covering the difference between what you owe and the actual cash value of your vehicle. Suppose your remaining loan balance is $18,000 and your insurance settlement is $15,000. GAP will cover the remaining $3,000. Plus, with GAP Advantage, you'll receive a $1,000 credit toward financing a replacement vehicle.
• Auto Essentials Vehicle Protection Plan: Auto Essentials is a package of coverage that protects you from normal driving incidents and out-of-pocket expenses that aren't typically covered by insurance policies, manufacturer's warranties or extended warranties. You can make unlimited claims (excluding key or remote replacement), and there is no deductible for any service. Coverage includes:
  • Key or Remote Replacement²
  • Tire and Wheel Road Hazard Protection
  • Paintless Dent Repair
  • Windshield Repair³
  • 24-Hour Roadside Assistance
• Mechanical Breakdown Protection: Did you know that one in three vehicles experiences a mechanical failure in a given year? With MBP, you have protection from unexpected repair costs after the manufacturer's warranty expires, which can be in the thousands of dollars. Plus, there's a $0 deductible for all covered mechanical and electrical repair, as well as 24/7 roadside assistance.

¹ GAP is subject to limitations and exclusions, including but not limited to a loan-to-value (LTV) maximum.

² Key or Remote Replacement not available to consumers who reside in WY.

³ Windshield Repair not available to consumers who reside in FL.