It is common to finance a vehicle purchase with some type of loan. Paying cash for a vehicle can stress your financial flexibility and can deplete your rainy-day funds. A vehicle loan can be the best way to avoid a financial hardship. Among the various options available for funding a car loan, such as dealer financing, credit cards, bank loans, or credit union loans, using a credit union stands out as the most viable and financially reasonable option. Consider the following when trying to decide which financing option to pursue for your car purchase.
Reasons Why Credit Union Auto Loans Are a Better Option
Credit Unions Are Member- and Community-Oriented
Credit unions make use of cooperative memberships and do not have the same profit focus that banks do. Any extra money a credit union makes is returned to members in the form of better rates and financial offerings.
Simpler Loan Process
A vehicle loan from a credit union is easier to obtain than loans from other sources. This is because credit unions have a member focus that allows them to take into account a loan seeker’s personal situation as a whole, rather than viewing them as a collection of credit scores and other figures.
Most members of credit unions do multiple forms of financial business with the institution. This allows the credit union to have a full understanding of a member’s financial situation and abilities. When evaluating someone for an auto loan, credit unions can take all of this pre-existing information into account and create an accurate picture of your ability to repay the loan. Since most of this information is already on hand, there is not as much need for disclosure on your part.
As mentioned above, credit unions reinvest money into member services such as better interest rates on loans. This means interest rates will be more competitive than those obtainable from dealer financing or banks.
Credit unions offer certain perks and advantages to members that are not available at other financial institutions. Non-standard loan packages, preferred rates, profit-sharing programs, and various member-only offers and discounts are all examples of the ways that credit unions support and encourage their local communities.
Some credit unions work with local car dealerships to provide better financing options to those looking to purchase a new car. Try asking your car dealership if they work with any local credit unions in order to find nearby auto loan options that are more tailored to the specific business.
Auto Loan Rate Options at LUSO Federal Credit Union
LUSO Federal Credit Union offers numerous auto loans in Hampden County that are specially designed to keep you financially sound and get you on the road as quickly as possible.
- New Auto/Truck Loans for 2015 or Newer Vehicles: Loans start at $1,000 with one- to seven-year terms and interest rates as low as 2.490% (2.655% APR).
- Used Auto/Truck Loans for 2014-2013 Vehicles: Loans start at $1,000 with one- to six-year terms and interest rates as low as 2.490% (2.655% APR).
- Used Auto/Truck Loans for 2012-2011 Vehicles: Loans start at $1,000 with one- to five-year terms and interest rates as low as 2.999% (3.204% APR).
- Used Auto/Truck Loans for 2010-2006 Vehicles: Loans start at $1,000 with one- to four-year terms and interest rates as low as 3.490% (3.750% APR).
Feel free to contact our LENDING HOTLINE at 888-848-5876 for more information.