You need to buy a car and are exploring auto loans. But between all the different financial institutions, interest rates, and auto loan rates, it can be hard to decide between multiple lenders and their financial services.
T&I Credit Union is happy to assist with a focus on your bottom line, whether that means saving money or better understanding your monthly payment and financial commitment.
Advantages of Getting a Car Loan at Your Credit Union
One of the primary draws to taking out a car loan from your credit union is the potential savings on interest rates and subsequent payments. Because credit unions are not-for-profit organizations that reinvest profits into their members, we can offer lower rates than profit-margin-focused banks. These cost differences can be significant, especially when considered over the life of the loan.
At T&I Credit Union, we offer loans with competitive, fixed-rate APRs with an interest rate as low as 1.99% APR for 60-month new car terms, 2.99% for 72 months, and 3.75% for 84 months. Loans on used cars from 2017 or older start at an APR interest rate as low as 2.99%.
Lenient Standards
Another advantage of a credit union loan is that it may make it easier to be approved. Compared to other financial institutions, credit unions may be more willing to work with members with a second-rate credit score and offer more flexibility in the underwriting process and loan approval.
Credit unions offer lower fees and lower loan minimums. Fees are reduced across the board, so you’re less likely to pay unnecessary administrative costs.
Unique Benefits
T&I Credit Union further offers complementary products and services like a free analysis of credit scores and online money tracking, which are useful services in the car loan application process.
We also offer GAP insurance, which protects you from a loss on a totaled car. If you’re signed up, it can cover the difference in what the insurance company pays on a wrecked car and what is still owed. Our GAP insurance also offers an unlimited $500 deductible for any damage done to the vehicle within the first three years.
Credit unions offer more personalized service, as they tend to be close to the communities they serve. They offer a member-centric approach and loan decisions are made by a local volunteer board rather than a corporate office, so you can rest assured that the credit union is working with your best interest in mind.
Car loans are a significant part of a credit union’s business so the process has been refined to be very user-friendly, with applications completed at a car dealership, online or over the phone, depending on what’s easier. Generally, credit unions can offer very favorable pricing on their vehicle loans.
How to Apply for a Car Loan
The credit union reviews your identity, income, employment information, and credit history before approving your application. You’ll also need to provide information about the car you want to purchase, and show proof of insurance.
You can also consider getting pre-approved for a loan so you can go to car dealers with a negotiating price in mind.
Final Tips
Before taking out a loan, try and improve your credit score by ensuring you are paying your bills on time and reducing your credit card debt. At T&I Credit Union, we offer secured loans, which are loans that match the amount of money in your savings accounts, and increase your credit score when they’re paid off.
It also makes sense to strive for a short-term loan and a larger down payment. Short-term loans usually come with lower interest rates, and a higher down payment means less interest to pay off in the future.
Closing Thoughts
Purchasing a car is a huge decision. Always examine the terms of all offers and ensure you are agreeing to the best offer for your financial situation.
Financing your next vehicle with T&I Credit Union can save you money and minimize hassle. For more information about our car loans call T&I Credit Union at (248) 397-9571.
We offer exceptionally low interest rates, with a strong focus on helping our members and trained financial professionals who can walk you through the entire loan process.
