Tap to Read ➤

Is It Better to Get a Car Loan From a Credit Union?

Modern Times May 24, 2019
Buying a new car can be an exhilarating experience, but did you know that you may get more benefits and perks by getting your car loan through a Credit Union?
Buying a car is exciting, especially if you're buying a VW from an award-winning VW dealership. Getting a loan from the dealership is more convenient, even though Credit Unions provide perks, discounts, and rates.

Even though credit unions are a good option, it may be worth your wild to do some research on payment options and present them to the dealer.

Credit Union Perks

Getting a loan from a Credit Union like the credit union in Kentwood, MI is a safe bet for car buyers. But not many are aware that some credit unions offer perks to their customers like discounts on local vendors as well as medical programs for vision.

Looking into rates and perks of a Credit Union could definitely save some money in the long run.

Credit Union Rates

If you have great credit, it won’t be hard to secure a great APR rate of anywhere from 1.2 - 4.9 percent. This is a great rate and is locked in for a certain term.

If you’re looking for stability, this may be your best option, but if you’re looking for great pricing it couldn't hurt to look into different options.

Dealership Perks

Car dealerships have the power to secure great financing options, and they can be worked into the price of your car. If you have a lower credit rating, you always have the option of financing a vehicle from a buy-here-pay-here car dealership.

These dealerships offer affordable financing to people who have no credit or bad credit, as well.

Dealership Rates

The best part about financing from a dealership is the fact that dealerships often work with more than one lender. This means that they will get the best rate for you based on your credit from various lenders.

This could work out well in the end, especially if you let them know that you’ve been looking into financing options.

Your Best Bet

Your best bet when it comes to financing is to make the best decision for your financial situation. If you have low or no credit, you might want to look into other lending options.

If you have a great credit rating, shop around for the best interest rate you can get and let your dealership know, so they can work with you.
When you’re buying a new or used vehicle, always make the best possible financial decision based on your current situation.

Credit lenders will always work with those who have a great credit rating especially dealerships. Do what is best for you and drive away in your new vehicle with a smile!