When it comes to purchasing a car, if you don't have the cash to purchase a car, you are going to need to finance your car through some financial institution. You can go through a bank or a credit union. Financing your vehicle through a credit union offers a few distinct advantages.
Credit Unions Cover a Wide Range of Vehicles
When it comes to getting financing for a new vehicle, not all lending institutions are willing to lend you money for just any type of vehicle. Many lenders will only lend you money if you are buying a certain type of vehicle or a vehicle that is only a certain number of years old.
Credit unions tend to offer more flexible financing terms. If you are looking to purchase a truck instead of a car, a large passenger van instead of a car, or even a classic car, you are more likely to get the lending you need no matter what vehicle you want to purchase.
Credit Unions Often Don't Have Early Payoff Penalties
When you purchase a vehicle, if you pay the loan off before the loan due date, many lenders charge you an early payoff penalty. The point of the early payoff penalty is to make sure the lender doesn't lose out on interest they would have otherwise been able to collect from you if the loan went its full term. That means you don't end up saving that much by paying off the loan early.
With a credit union, you might not face an early payoff penalty. So if you have the ability to pay off your loan early, you will save a little interest on your car loan and save a little money on the life of the loan.
Credit Unions Offer Assistance with the Car Buying Process
Many credit unions pair up with different auto programs and can actually offer you assistance with finding the right vehicle for you to purchase. If you need help vetting respectable dealers, your credit union may be able to help you with that process, based on their own partnership with dealerships and other businesses that assist with the car buying process.
Credit Unions Offer Great Interest Rates
Finally, credit unions offer great interest rates. Instead of having to pay the high interest rates that are often offered by banks, you are generally offered much lower interest rates when you finance with a credit union. Credit unions also offer more flexible loan terms, so if you want shorter or longer loan terms, it is easier to figure out those details with a credit union.
When you are ready to purchase your next vehicle, consider going through a credit union auto lending program. With a credit union, you can purchase any vehicle you want, get assistance with the vehicle purchasing process, enjoy great interest rates, and avoid an early payoff penalty.
When was the last time you realized you were in the red financially? Although most people don't think about their finances on a day to day basis, it can be easy to find yourself living paycheck to paycheck if you aren't careful. I began thinking carefully about the financial implications of some life decisions I was making, and I knew I had to make a difference. I talked with a loan officer about getting things together, and he was instrumental in helping me to work things out. Read more about my financial successes and failures on this little website. You might be able to avoid some of my previous mistakes.