Auto Finance: Credit Union Financing For Your Auto
If you are considering the purchase of a new auto in the near future, you’re probably also considering how you will finance your auto. Very few folks can afford to buy a auto out right, so you want to consider your options to find a good interest rate and terms on a auto loan. Whatever your reason is for financing a auto, you should know that a bank is only one of several options that you have.
Although many people are aware that you can apply to a bank for auto loan financing or that you can qualify for auto financing directly through the dealership where you’re buying your auto, people often forget that there is a third alternative in the auto financing business: credit unions. Unlike a traditional bank, a credit union is a not for profit entity that operates solely for the benefit of its members.
Every member of a credit union is a part owner of the enterprise, and although this doesn’t give you any decision making privileges, it does ensure that you’ll be treated as a team member by the credit union facilitators. Because credit unions are not in the business of making money for themselves, they are often able to offer auto loan financing at drastically reduced financing rates vs. what you may find with a larger bank or at the auto dealer. And although some credit unions require certain criteria to become a member, there are credit unions that cater to all types of consumers and people that live in specific areas, so do a quick online search and you will easily find a credit union that you can use.
If you already keep you money in a traditional bank, you should know that you won’t be required to open new accounts at the credit union just because you have applied for auto financing. Credit unions are usually happy to supply you with auto financing with the hope that you will continue to use them for more products and services over time. And when you contact your local credit union to inquire about financing your auto, you should ask them if they have a new or used vehicle buying program as well.
You should still shop around for your auto at numerous sources, but credit union buying programs can be a great way to get a good deal as well.