Home Finance Why Financing Your Car Loan at a Credit Union Is a Smart...

Why Financing Your Car Loan at a Credit Union Is a Smart Choice

When you’re buying a new or used car, people typically go straight to the local dealership. While dealerships make their own financing programs sound especially attractive, it’s always to your benefit to shop around for the best auto loan rates-starting with local credit unions. Here are some reasons why you’ll find better auto loan rates and more personalized service at a credit union.

You have a much better chance of getting your loan approved if you have second-rate credit or have had some credit problems in the past. They will more likely listen to your personal story over a traditional commercial bank.

A credit union is different than a traditional bank or other lending institution. They offer loans and other financial services to people through a cooperative membership and it is much more than just a place to house a checking or savings account. They show their members financial interest as a high priority and they are not in business to sell their members anything just to inflate loan volumes. Best of all, their profits go back to their members in the form of lower rates on other products and services like savings and loans. There are 377 credit unions in California with over 1550 local offices. Overall, throughout the country, they save their members approximately $8 billion a year in fees, dividends, etc.

Most credit unions offer better rates to their members or other financial institutions. Especially the banks available through the local car dealerships. Whether you have a large or small down payment for your new or used car, they can educate you on the best possible deals for your auto loan. According to the latest report from Informa, the average rate on a $30,000 new car loan from a bank is 4.16% and from a credit union is 2.82%; which is a 32% reduction in rate and equates to a savings of $1,100 over the life of the car loan.

As a member you have access to educational resources. Almost every credit union has a member or resource center where members can educate themselves about financing options and how to evaluate the value of their vehicle purchase. If you are an inexperienced car buyer you can turn to them for an unbiased opinion. Most importantly, they can show you how to calculate the real value of the car you want to purchase, not just what the dealer tells you, which will ultimately affect your final decision.

Enjoy a member-centered approach. Since loan decisions are made by a local volunteer board rather than a corporate office, members have a more personal experience. This local approach gives you the opportunity to discuss your loan options, discuss flexible repayment choices, as well as review your entire financial situation with your personal loan representative. This type of personal interaction takes away the pressure of applying and locking in your financing and you can be assured they are working with your best interest in mind.

A car loan is helpful. But a good car loan can make a dramatic difference in your life. Financing your next vehicle with your local credit union can save you money, reduce worries and minimize hassles. They specialize in good car loans that fit your specific requirements.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Can You Do Affiliate Marketing Without A Website?

With affiliate marketing you don't actually need a website at all, and you can just simply direct your traffic straight to the product's...

How To Choose A Niche For Affiliate Marketing

There are some affiliate niches - topics - on the internet that are more profitable than others. Likewise, some are difficult for beginning...

Affiliate Marketing Trending in India 2020!

So, What Exactly Affiliate Marketing Is?Affiliate marketing involves referring other people to purchase the product of a specific company. Whenever any person purchases...

How To Choose The Right Products To Promote As An Affiliate

A major step in becoming a profitable affiliate marketer is to choose the right products to promote. You want to be sure that...

Recent Comments