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When you buy a new or used car, people usually go straight to the local dealership. While dealerships make their own financing programs especially attractive, it’s always to your advantage 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 the credit union.
You have a better chance of getting your loan approved If you have substandard credit or have had some credit problems in the past. They are more likely to listen to your personal story over a traditional commercial bank.
A credit union is different from a traditional bank or other lending institution. They provide loans and other financial services to people through cooperative membership and are more than just a place to hold a checking or savings account. They show the financial interest of their members as a high priority and they are not in business to sell anything to their members just to increase the loan amount. 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 1,550 local offices. In total, across the country, they save their members about $8 billion a year in the form of fees, dividends, etc.
Most credit unions offer better rates to their members. or other financial institutions. Banks in particular are available through 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 Informa report, the average rate on a $30,000 new car loan from a bank is 4.16% and from a credit union is 2.82%; That’s a 32% rate reduction and equals $1,100 in savings over the term of the car loan.
As a member you have access to educational resources, Nearly 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 then you can approach him for an unbiased opinion. Most importantly, they can show you how to calculate the real value of the car you want to buy, not just what the dealer tells you, which will ultimately influence your final decision.
Enjoy a member-centric approach, Since loan decisions are made by a local volunteer board rather than the corporate office, members have a more personalized experience. This local approach gives you the opportunity to discuss your loan options, discuss flexible repayment options, as well as review your overall financial situation with your personal loan representative. This type of personal interaction takes the pressure off applying and locking in your financing and you can be sure they are working with your best interests in mind.
Car loan is helpful. But a good car loan can make a big difference in your life. Financing your next vehicle with your local credit union can save you money, reduce worry and ease hassle. They specialize in great car loans that are tailored to your specific needs.
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