If you are looking for financing for your car, you might want to consider going to a credit union in lieu of going through your dealers bank for a loan. There are several advantages to going to a credit union that you might not get if you go through your dealer. Why would you want to go to your credit union for a loan?
Know Your Financed Before You Shop
If you go to a credit union to get financed, you will know upfront what the cost is going to be. You can negotiate loan terms and interest rate before you go shopping. When you go to the dealer, you know that you have a loan for 10,000 dollars, or whatever your credit union has pre-approved you for. You also know the interest rate that you are going to get ahead of time as well.
Get A Better Deal
Credit unions can give you a better deal than your dealer might. The dealer is going to be motivated to get the highest interest rate possible to make more money. Your credit union is going to have a set rate. You could possibly get a rate as low as 2.99 percent from a credit union with even decent credit. The lowest interest rate you will get with average to good credit at the dealer will be closer to 4-5 percent.
Leverage Your History With The Credit Union
The dealer’s bank is not going to know you or your credit history. They will simply judge you by your score and make a decision. Your credit union may understand why some payments were missed in the past, or that you were recently unemployed, but are working and making money now.
If you aren’t comfortable doing business with a lender that your dealer finds, going with a credit union can be a great way to get financed and save money.