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 shopping 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 member’s 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, through 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 them 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 absolutely 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 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 that 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.
Source by Patrick Redo