Being a member of a credit union certainly has its perks. If you’re someone in the market for a new or used vehicle, you may be looking at auto loan calculators and interest rates to see how you can get the lowest payment possible. The economy hasn’t been easy on any of us the last year, but that doesn’t mean you can’t find an affordable rate that you feel comfortable and confident in. Today on the blog, we wanted to help educate readers on the benefits of working with a credit union to finance your vehicle.
A credit union can be a great solution for anyone thinking about financing (or refinancing!) a car, truck, SUV, RV, boat, motorcycle or anything with wheels. We even finance tractors! Credit unions offer interesting upside in comparison to banks, and this is what we’re here to talk about today!
Here are a few reasons to consider a credit union like TVFCU for your next auto loan.
One of the primary reasons that credit unions are a great choice it the reality that credit unions can offer competitive rates and terms for borrowers. Whether you are trying to establish a credit history or in the process of re-establishing your credit score, getting a car loan at a credit union can help!
1. Lower Interest Rates on Loans
Banks are for-profit entities. Credit unions are not-for-profit. They are member-owned, which means if you are a member, technically, you are a part-owner of a credit union. The reality is that, because of this factor, credit unions like TVFCU can offer lower interest rates, which can play a significant role in your monthly payment and total interest paid after you complete your auto loan.
Even just a few percentage points off of an interest rate can lower your monthly payment by $20-$40 dollars a month, and lower your total interest by $500-$1000 when the entire auto loan is paid off.
2. Credit Unions Offer Unique Benefits
Any profits that credit unions make are returned to members. This is another benefit of being a member of a credit union. Because members are considered owners, any profits that are gained by the credit union are given back to the members in the form of dividends. Earnings are also passed onto members in the form of higher rates for deposit accounts and lower rates on products like auto loans.
Another interesting thing to consider is the idea of ATMs. Let’s say you belong to a local community-based bank that may be popular in your region. If you travel, there’s a chance you won’t find an ATM that belongs to your bank because you aren’t in your region. Credit unions typically participate in a shared branch and ATM network. The best part? You gain access to surcharge-free ATMs nationwide!
3. Personalized, Flexible Customer Service
When you walk into a credit union, you walk into a community that is local and personal. The relationships built within a credit union are based on a unique story that only you can tell. We are here to listen and work with you. If you have a lower credit score or have gone through some trouble with your finances, a large corporate bank may be set in stone and push you through for someone that is more qualified. The reality is they don’t need your business.
Credit unions are more likely to work with you. There is typically more flexibility throughout the loan process, and you may be more likely to be approved for an auto loan at a credit union than a big bank.
4. Ease of Applying for Auto Loans
To be approved by a bank for a loan, you will most likely need to go in and speak with a personal banker. The process can be extensive and invasive. If you are a member of a credit union like TVFCU, you can simply apply online, or you can certainly come in and speak with someone regarding your auto loan. You have the choice. It can make it easy for you to compare interest rates when looking at other lenders’ rates or what the car dealership is offering.
If you apply for a preapproval with a credit union before ever walking into a car dealership, getting a competitive rate can certainly help you negotiate the best rate possible. If you are a member, you can probably bet on getting the best rate by working directly with a credit union.
The thing is, typically, when you apply for a loan through a dealership, a third party provides the loan. The dealer gets a financial benefit for matching you with “their” financing partner, which will likely mark up your interest rate to make a profit. If there becomes an issue, the dealer won’t help you with the financing company. You will be on your own.
5. Becoming a Member Might Be Easier Than You Think!
The final reason to consider turning to a credit union for your next auto loan is that we are not exclusive! Joining TVFCU as a member doesn’t require you to be a part of a specific industry, company, or job type. Many people believe that credit unions are limited to who can apply or become a member, and though this may be the case for some specialized credit unions, it’s certainly not the case for all. Joining is easy! You can join in 3 easy steps!
- Provide us with a valid driver’s license, state ID, or Passport.
- Demonstrate what county you live in, work in, have business in, or have family that lives, works, or has business in. (Make sure you are eligible by clicking the “Open an Account” button at the very top of this page)
- Open a Primary Share Savings account and deposit as little as $5
That’s it! If you’d like more information about joining TVFCU as a member, simply give us a call at (585) 343-5627 or stop into our branch in Batavia! We’d love to learn more about your auto loan or whatever you need in the world of finance! Hopefully, you’ve learned something about the benefits of working with a credit union for an auto loan today, and we look forward to hearing from you!
