Looking for the best rate to finance the purchase of your vehicle can seem like a minefield of choices. How does rate factor into a monthly payment that is both affordable and reasonable?
Let's look at what is often the most sought after rate: 0% Financing. Who can beat zero? One would think 0% is the best available rate and question why would anyone want to pay anything above a rate of zero?
Here are some important factors to strongly consider:
You negotiate a purchase price with a local dealership for $23,000 with an offer of 0% financing for 60 months or a $2,000 rebate. These are both attractive offers but you have no idea which one offers the greatest benefit for you. We can show you how to break these options down:
Purchase Price @ $23,000
Using this example, it is quite clear the rebate option along with credit union financing will help you save more money. In this example, you will save $15 per month and when you add this up over the life of the loan (60 months), you will save $900.
If you are still not sure which is the right option for you, please contact us and we will gladly assist you in finding the right fit.
Doing business with your credit union puts you in the driver’s seat. It’s a different experience working with a credit union than a large bank. For starters, the credit union is a not-for-profit organization established by members for members. That means you! Once you qualify for a loan with your credit union, you’re a member of a very special financial institution.
Here are some of the perks of getting a loan with a credit union:
Credit unions in general offer better auto loan rates than major banks. It is always a good idea to check with your credit union first to obtain a loan before shopping for a new or pre-owned vehicle. Often you will find better rates and a more personalized approach.
Correct, rates at credit unions are generally lower. The reason, credit unions pass savings from their not-for-profit status throughout their product lines. As an example, credit unions offer members higher rates on savings accounts and lower rates on loans and credit cards. They are not looking to make a profit off their members.
Credit unions exist for their members. They are more likely to understand and listen to your circumstances when applying for a loan; sometimes adjusting terms of loans accordingly. While the loan approval process is similar, a credit union is much more approachable and willing to work with you. Credit unions strive to provide a personalized approach that values the member and the members’ financial situation.
Members report high satisfaction rates when conducting business with credit unions. Did you know the mission of a credit union is to provide members with affordable financial services because their goal is not to profit from a member?
If you have ever been turned down by a major bank, you will be surprised to learn how flexible and happy your credit union is to do business with you. If you are self-employed, it can be tough to get financing or approval for anything from a major bank. If you are in good standing, credit unions are very willing to work with you.
Working with a credit union will maximize your income by saving you more while increasing your savings!
How much can I afford on a monthly basis?