When you’re ready to buy a new car, you can receive financing from a financial institution, like a bank or credit union, or directly from the dealership. However, financing your auto loan from a credit union offers several added benefits to members, including great rates and flexible terms.
Explore the benefits of credit union auto financing as you prepare to purchase a vehicle. The choice may not only save you money, but also meet your individual needs, as well.
Credit Union Auto Finance Advantages
Here are five compelling reasons to finance a car through a credit union.
1. Access Flexible Underwriting
You’re more likely to get approved for credit union auto financing thanks to a flexible underwriting process. Credit union lenders value their relationship with you and can offer customized terms and personalized deals despite your credit history or current financial circumstances.
While you still have to go through the application process, a credit union can analyze your auto finance request on an individual basis. You won’t be automatically approved or rejected based on strict guidelines. Instead, the lending officer can consider your current work situation, recent financial hardships, budget restrictions, and other extenuating circumstances. You may even qualify for a loan if your credit score or history is less than stellar. Simply share details about your credit report.
Rest assured that your car finance application will receive personalized attention at a credit union. You could also qualify even if your loan would be denied by a traditional bank. Check with a credit union first, and take advantage of the better approval odds provided by flexible underwriting.
2. Save Money
You can save money in several ways when you auto finance from a credit union.
First, credit unions automatically save customers money because they are not-for-profit. They intentionally cut overhead costs and will not charge customers higher interest rates or fees just to show a bigger profit margin on investor reports.
You also save money by banking at a member-owned credit union. All generated profits from deposit and loan accounts go back to the members, including you.
Finally, because credit unions like to reward members, you will get a good deal on an auto loan. Credit unions typically charge less interest and lower fees for auto loans. Plus, they can customize the loan amount, minimum charge, and length depending on your needs. It is true that car dealers and traditional banks offer deals on car loans. They even shop around and find you a variety of competitive offers. However, always investigate auto finance from credit unions. You generally get access to a great deal with low interest and low fees when you take advantage of this auto finance option. Car manufacturers often offer 0% financing or rebates. In most cases, you are better off taking the rebates and financing through a credit union opposed to taking the 0% offering. Doing the math of rebates and paying a super competitive rate versus 0% financing and no rebates pays off.
3. User-Friendly Loan Experience
Applying for and obtaining an auto loan from a credit union is quick and customized. That’s because you are a priority.
The process starts with an application method that’s convenient for you. Complete the application online or over the phone by calling our loan line at 269-488-5945.
Your loan officer will explain the available financing options and help you calculate the real cost of your vehicle. Together, you will make the right choice for your budget and needs.
You can select a convenient and user-friendly payment method. In many cases, you can choose the loan’s due date. Also, elect to have the payment automatically deducted from your credit union account or choose to mail or drop off payments.
And if you ever have trouble making a payment, contact the credit union. You will be put in touch with someone who will listen to your specific situation and offer you solutions to help you through tough times, such as potentially adjusting your payment date or skipping your payment.
4. Receive Personalized Attention
You’re more than a number at your local credit union. The lender will know your name and your unique financial situation, which allows him or her to offer personalized customer service and support.
This comes into play from the moment you first inquire about auto finance. The loan officer you talk to will review loan options with you and ensure you understand all the details.
When you’re ready to apply for a loan, a dedicated loan officer at a credit union will listen to your story. The loan officer will use your income, assets, and debt details, plus other circumstances, to create a custom loan offer.
During the approval process, you’re welcome to discuss flexible repayment options, including the loan due date. Plus, you’ll never feel pressured to accept a loan offer. Your credit union lender will always prioritize your best interests.
You may also talk to your loan officer if your financial situation changes in the future. Trust that if you face a financial challenge or setback, your credit union lender will put your needs first.
This personalized attention is one more reason why auto finance from a credit union is a great idea.
5. Gain Dozens of Benefits
When you join a credit union, you get more than a flexible, competitive auto loan.
For example, your credit union membership could include:
- Higher interest rates on deposit and savings accounts
- Lower interest rates on home loans and other types of loans
- Reduced fees on accounts and loans
- Access to low-interest credit cards
- Education about financial products, services, and options
- Opportunity to make decisions about the credit union’s future
- Community involvement and betterment
These benefits save you money, help you manage your finances successfully, and boost your financial portfolio.
Why Credit Unions Are The Place To Go For A Car Finance
The next time you’re in the market for a vehicle, check out your local credit union. You’ll gain access to financial, personal, and social benefits that are valuable now and into the future.
At Arbor Financial Credit Union, we look forward to serving you and providing you with a convenient, affordable, and simple way to buy your next vehicle.
