If you’re considering buying a new car, you might be wondering whether it makes sense to apply for a credit union auto loan. After all, there are other options available. You could go to a bank – or you could try for a one-stop experience and get financing through a car dealership.
At Addition Financial, we pride ourselves on offering a wide array of auto loan options for our members. We understand you might have some questions about the benefits of getting your loan with us. With that in mind, here are five reasons to get a credit union auto loan.
#1: Lower Interest Rates and Fees
The first reason to consider a credit union auto loan is that you should be able to get a better interest rate than you would with a bank or finance company. Credit unions are not-for-profit entities and are owned by their members. They give their earnings back to members in the form of lower interest rates.
On a related note, credit unions also tend to have lower fees than banks and other lenders. Because they’re not focused on profits, they are always striving to give their members the best deal possible. That’s one of the reasons that you may want to consider joining a credit union like Addition Financial.
#2: Personalized Service
Big banks and financial institutions tend to treat auto loans as run-of-the-mill transactions. They offer little in the way of customer service and support – and they’re not equipped to offer the kind of personalized service a credit union can.
At Addition Financial, we work closely with our members to provide a high level of service. We understand you might have a lot of questions. We’re here to answer them and to provide you with the guidance and information you need to apply for a loan, get approved and get the car you want.
#3: Shorter Loan Terms
If you get a loan through a bank or a dealership, you may be limited in terms of the length of your loan. Sometimes dealerships offer long loan terms. These can seem attractive on the surface but can also add up to substantially higher interest payments than a credit union loan.
Credit unions work with members to give them a choice of how long they want to take to repay their auto loan. If it suits your purposes and you can afford it, you can opt for a shorter period of repayment. Your monthly payment might be higher than it would be if you opted for a longer term, but you’ll end up paying less interest in total.
#4: More Flexible Underwriting
When you join a credit union, you’re more than a customer – you’re a member. That means you’ll be part of the family – and you’ll be in a position to talk about your financial circumstances and challenges without pressure. In other words, applying for a loan at a credit union is a friendlier process than applying for a bank or dealership loan.
At Addition Financial, we value our members. If you have concerns or there are mitigating circumstances that have affected your credit score, we want to hear about them. We can work with you to come up with loan terms that will be affordable and take your personal situation into consideration.
#5: Additional Benefits of Joining a Credit Union
If you’re not already a member of a credit union, you might be wondering whether it’s worth joining one simply to get an auto loan. The thing you need to know is there are plenty of benefits to joining a credit union.
In addition to the things we’ve already mentioned, credit unions:
- Offer mortgages, second mortgages and home equity lines of credits
- Have low-interest credit cards and reward cards
- Offer educational resources to their members
- Are committed to benefit the communities where they do business
At Addition Financial, we work closely with our members to help them manage their finances. People who have had trouble with their credit can come to use for assistance in repairing it, qualifying for a credit card and – eventually – achieving their dream of car or homeownership.
In other words, credit unions are not faceless financial institutions. Banks tend to be very rigid when it comes to underwriting. The largest banks offer limited customer service and may only provide top-notch service to their most important customers.
By contrast, every member of a credit union is a priority. You’re part of a community and you get the benefits of membership with every transaction you conduct.
Getting a credit union auto loan provides you with a level of flexibility, security and savings that simply aren’t available with a loan from a traditional bank or dealership.
To learn more about Addition Financial’s flexible auto loan options now, please click here.
Posted on Jul 16, 2018
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