5 Reasons to Finance Your Car with a Credit Union
When you’re in the market for a new car, you have a lot of choices to make. What kind of car do you want? New or used? SUV or sedan? And once you’ve made all those decisions, you have to figure out how you’re going to pay for it. If you’re like most people, you’ll need to take out a loan. But instead of going to a bank, why not finance your car with a credit union? Here are five reasons why it’s a great idea.
- Lower interest rates – One of the biggest benefits of financing your car with a credit union is that you’ll typically get a lower interest rate than you would from a bank. That’s because credit unions are not-for–profits, so they don’t have to make profits for shareholders. Instead, they can pass those savings on to their members in the form of lower rates.
- Fewer fees – In addition to lower interest rates, you’ll also save money on fees when you finance your car with a credit union. Credit unions don’t charge things like application fees, prepayment penalties, or annual fees. Also look into the GAP & Extended Warranty products they are usually much cheaper than banks or dealers.
- Personal service – When you go to a bank, chances are you’ll be dealing with nameless, faceless customer service reps who are just trying to get through as many calls as possible. But when you finance your car with a credit union, you can expect personal, one-on-one service from someone who cares about your financial well-being.
- You’re more than just a number – At a credit union, you’re not just another account number. You’re an actual person with real financial needs and goals. The lending decision isn’t based on some algorithm; it’s based on getting to know you and your situation.
- It feels good – When you finance your car with a credit union, you can take comfort in knowing that your money is going to support other local businesses and families instead of lining the pockets of wealthy shareholders. Plus, most credit unions offer perks like extended warranty coverage and GAP insurance at competitive rates.
If you’re looking for a new car but aren’t sure how to finance it, consider using a credit union instead of a bank. With lower interest rates, fewer fees, and personal service, financing your car with a credit union is a smart choice for anyone who wants to save money and avoid headaches. Plus, it feels good knowing that your money is going back into the local community instead of into the pockets of corporate fat cats!