Most people don’t buy cars outright and instead finance their purchase with a car loan. This can be a smart option to get you on the road quicker, without having to save the full cost of your new car. T&I Credit Union is a trusted financial institution that can loan you the needed funds for your new car while providing additional products and services to help you get and stay ahead financially.
About Auto Loans
An auto loan can help you enjoy the benefits of a new car before you’ve saved the funds to pay for it in full. T&I Credit Union is here to help you make an investment that will improve your life and increase your human capital.
If you take advantage of a car loan, you will typically make a down payment on the cost of the car, and then turn to a financial institution to cover the remaining cost. You’ll pay back the loan amount over time with an additional annual percentage rate (APR). The APR is essentially the price of a loan; just as you’ll shop around for a fair deal on a car, make sure you find a lender you can trust so you know you’re not paying too much for your car loan.
The loan term will determine how many monthly payments you’ll pay. At T&I Credit Union, you can choose to make up to 60 monthly payments for a used car, and you can choose to take a 72 month or even an 84-month loan for a new car.
Getting Pre-Approved
It’s a good idea to get pre-approved for a car loan so you’ll have a better idea of your budget when shopping for a car. You can also increase your negotiating power by having already secured auto financing and keeping in mind the total cost of the car, which can save you money at the dealership.
For pre-approval, you’ll need to fill out a loan application. You can get started in about 20 minutes by applying for a car loan online. You need proof of income and assets, your driver’s license and Social Security numbers, and proof of employment. T&I Credit Union will look at the cost of the car, your credit report, and the duration of the loan to determine the interest rate you’ll have to pay.
Finding a Favorable APR
Loan applicants with excellent credit can expect to qualify for the lowest rates on car loans. If you have a poor credit score and are looking for a longer loan term, you’ll pay higher interest rates. You won’t be able to significantly improve your credit score in the short run, but there are other steps you can take to lower your APR.
A good option is often to find a co-signer with a great credit score to vouch for you. A credit-worthy co-signer will act as a guarantor for your payments and make the loan less risky. Parents will often serve as co-signers for their children, but remember – this favor is a big ask; if you fail to repay your loan the debt will fall on your co-signer.
This is especially important if your credit score is very low, or below 450. With this credit history, it is even more important to be wary of unscrupulous lenders who may charge exorbitant rates that can be hard to repay. If your credit score is low and you cannot find a co-signer, consider shopping for a less expensive car and keeping the loan term as short as possible, even if that means making larger payments each month.
The longer you intend to spend paying for your car, the higher the interest rate you can expect. So you can afford to make payments over a shorter duration, consider a car well within your means. This will allow your down payment to go farther toward paying off your car.
You’ll also benefit from a shorter loan because of how quickly cars depreciate. With a longer loan, you run the risk of owing more for your car than it’s worth, which is an unfavorable financial situation.
If you must settle with a higher APR because of your poor credit history, consider refinancing in the next year. By timely payment of all your debt installations, you should be able to raise your credit score and merit a more favorable rate for a car loan.
Smart Financing
An auto loan is a long-term commitment, so make sure you’re choosing a trusted and helpful financial institution to work with and can comply with the terms and conditions of the loan. T&I Credit Union is on a mission to help people improve their lives by providing good ways to borrow.
Cars are major purchases and interest rates can stack up to add thousands to your final bill. Car dealerships will often offer you a financing package when you buy your car, but keep in mind they may be charging you a convenience premium. Make sure you do your research ahead of time so you can get a good deal on your car loan.
We offer interest rates competitive with some of the leading institutions like Bank of America while providing member benefits and support that set us apart from the competition and help you make the most of your money. You’ll have access to online banking, free credit score analysis, and a financial tracker as a T&I Credit Union banking member.
T&I Credit Union Standard APRs
At T&I Credit Union we offer competitive, fixed-rate APRs. Our standard rates are determined by the duration of the loan and if the car is new or used. If your car is two years old or younger, we consider it new.
New car APRs are as low as 2.99%* for an up-to 60-month loan, 3.75%* for an up-to 75-month loan, and 3.99%* for an up-to 84-month loan.
Loans for used cars or those more than two years old can have an APR as low as 3.99%* for an up-to 60-month loan.
Monthly Payments
For an estimation of your monthly payments, use our auto loan calculator. This can give you the information you need to start your car search.
When you’re ready for a more accurate description of how much you’ll be paying each month, apply for pre-approval. You can even authorize a soft credit check which will allow T&I Credit Union to verify your credit report without impacting your credit score.
We’ll get back to you within 24-48 hours of your loan application submission so you can be armed with the information you need to make your final purchasing decisions.
Additional Services from T&I Credit Union
We know you’re making a major purchase with your new car, and we want to help you safeguard that investment. With our GAP insurance program, you can protect yourself against a loss from a totaled car. GAP insurance also includes a $500 Auto Deductible Reimbursement which will cover up to a $500 deductible for any damage done to your car for three years.
When you finance with a T&I Credit Union auto loan, you’ll become a member of our credit union. With this comes special benefits like the member referral bonus and member-friendly loans. Our money-saving tips and financial counseling services are additional benefits to improve your financial security.
Final Thoughts
Don’t let the big-ticket price of a new car dash your dreams of owning it. T&I Credit Union will lend you the funds you need and give you time and support to pay it back. Regardless of your current financial situation, we can work with you to find a suitable financing solution. For more information or personal assistance, call us at (800) 338-3908.
