These days, automobiles are more of a necessity than a privilege. Consumers depend on automobiles as a means of transportation to work, school, and important events. Just like all major purchases, people look for help with financing their next vehicle so much that auto lending is almost a way of life for most Americans.
Before signing on the dotted line with a bank or automobile dealership, potential consumers should look into financing with a credit union. Unlike banks and dealerships, credit unions are not-for-profit organizations. Because of this unique ownership structure, a credit union does not have to abide by loan restrictions and qualifications mandated by a large corporate office. So in simple terms, credit unions can generally be cheaper.
Here are just a few reasons why credit unions really knock the ball out of the park when it comes to loans.
Member and community oriented. Although the processes of making a car loan are very similar, credit unions are more likely to work with members on repayment options to avoid difficulty with repaying a loan.
Non-sales approach. Unlike commercial banks, which often grant their lenders bonuses or some type of compensation for the loans they get approved, credit unions work for their members and aren’t driven to sell you anything that equates to extra money in their pocket. All profits from members end up going back to members in the form of lower rates on other financial products, such as savings accounts, and more flexible loan options. If you don’t like the pressure of working with lenders from a commercial bank, consider heading to a credit union for a less sales-oriented approach—and potentially rewards in the form of better financial products and services.
Better chance of loan approval. If you’re worried you might get turned down for a car loan because of your credit history, consider approaching a credit union before you talk to a lender at a commercial bank. Even though the loan application process is the same and the underwriting process is similar, the credit union may make some adjustments that a commercial bank would not. Many credit unions are more inclined to listen to its members’ needs and unique situations—sometimes adjusting terms of a loan accordingly.
User-friendly loan process. Members can apply for car loans over the phone, online, or even by a mobile app.
Competitive rates and terms. Offering competitive rates and terms, a local credit union provides car loan options every bit as varied as a nationwide bank.
Educational resources readily available. If you’re a first-time car buyer and apprehensive about the loan process, you can turn to a credit union for unbiased answers. The credit union can show you how to calculate the real value of your car—not just what the dealership declares as the value of the vehicle—and make a better decision about the deal. Essentially, members can learn more about financing options and how to make the best decisions when assessing the value of their car purchase.
Member perks. In addition to competitive rates, credit unions often offer their members deals not available to other consumers – check out lovemycreditunion.org for more details.
Financing your next vehicle purchase through a credit union can be a great idea and is easier than ever. Stop by DoverPhila Federal Credit Union for more information on how we can possibly save you more money in the end.