If you’re looking at getting a new car, you’re probably also looking at ways to finance that vehicle. About 43% of all people are currently financing their cars, and the average borrower is carrying nearly $18,000 in debt for their vehicle. Whatever type of car you’re planning on getting, here are some good reasons to get credit union auto financing instead of asking your bank or car dealer for a loan.
- There’s plenty of choices. The idea of a credit union still sounds a bit strange to some people, and many people still think that national banks are a more secure bet than a credit union. This thinking is out of step with the times, though. Today there are more than 5,600 credit unions in America that are federally insured. Credit unions have more than 110 million members, and car loans are a third of their lending business. Although banks do have advantages in terms of branch locations and the latest technology, the deals available at a credit union usually can’t be touched by anything a national bank can offer.
- You’ll get lower interest rates with credit union auto financing. There’s a lot of reasons that credit unions are seeing such an uptick in credit union auto financing loans, and lower interest rates are one of them. On average, a credit union’s auto loan is less than 3%, while the average bank charges interest at 4.5%. For a $30,000 car, for instance, this translates into a savings of more than a thousand dollars over the course of the loan.
- People enjoy the ease of the loan process at a credit union. These days more applications for a credit union auto financing can be done online, over the phone, or even at the car dealership. Many car dealerships actually have recommended credit unions they can refer nearly anyone to, which smooths the process and makes it easy and quick to get a loan. Not only can applicants get a loan; they can also get a credit union account, too, which also has lots of benefits.
- Credit unions tend to have better service and closer ties to the community. Banks, especially big national banks, can be impersonal, and since they have business nationwide, they don’t have much incentive to work too hard for just one applicant. Credit unions, however, are likely to be more flexible and ready to listen to your personal story and understand your personal circumstances. With strong community ties, most applicants can rest assured that a credit union auto loan is a reliable and safe bet.
- Credit unions are owned by members and not by shareholders. At your typical bank, the shareholders and their interests are uppermost. At a credit union, however, every customer is an owner and all profits go back to members instead of to the shareholders. This means lower cost loans, better interest rates on loans and credit cards, better interest rates on credit union savings accounts, more friendly service, and greater reason to go for them for financing or any kind of banking need.
There are a lot of good reasons to get credit union auto financing, and these are just a few of them. When you’re ready to get your new car, consider credit union auto financing. It’s the best way to get the best deal on your next big investment.