As you may know, we currently have an auto loan promotion offering 1% off rates—available through March 31st. In an effort to help break those savings down in greater detail, we’ll look at the 1% savings from a few different angles. If you have any questions or want to speak with someone directly about auto loans, don’t be shy, give us a call to start the conversation today.
So, if you’re saving 1% on an auto loan, what does that actually mean?
APR Savings
To understand why 1% off an auto loan is valuable, it’s important to look at what APR is in itself. A lower APR reduces the total interest charged over the loan’s life. That means less money paid overall, which can lower your monthly payments (or allow a shorter term).
Your Monthly Payment
One of the most important aspects of borrowing a loan to pay for your vehicle is your monthly payment. By saving 1% on your APR, you create a better opportunity for yourself in terms of how much you will need to budget each month for the entirety of the loan. Once you settle on the length of the loan, you’ll be able to break down how much it’ll take each month to pay it all off. By saving 1% on APR, you can consider that total to be lower per month, or have a bit more flexibility in the length of your loan.
Your Down Payment
If you’re in the process of buying a new or used vehicle, you know that the larger the down payment you provide, the lower the monthly payment you will have. When you look at saving 1% off your APR on your loan, you can consider the fact that you’re saving money over time with less interest, so you may feel more confident in whatever down payment you feel you can provide.
Even if a large down payment isn’t feasible right now, this promotional rate reduction lets you save on interest and pay down the principal faster.
New or Used?
Leasing a new car is typically a bit different than financing it with an auto loan. Used vehicles are typically financed through auto loans, but dealers in both the new and used space can make the process intimidating and confusing in efforts to get the sale as quickly as possible.
If you are looking into financing a new or used vehicle, we recommend you take advantage of our promotion. The more research you do, the more you’ll see that credit unions offer some of the most competitive rates. If you don’t spend time with a lender, working out what your best auto loan plan is, you could end up getting roped into financing from the dealer.
Refinancing
The last example that helps to outline what saving 1% off an auto loan means is looking at the example of someone seeking to refinance an existing auto loan. Maybe you were someone who was roped into an auto loan that you want to get out of. This is where you can certainly straighten out your situation with the help of a 1% off promotion. You allow yourself a chance to take another look at your car payment, and make some adjustments through either the length of your loan or your monthly payment, while saving money that you normally wouldn’t.
If you’re thinking about your auto loan payment or looking for a new car, we recommend reaching out to speak with someone from TVFCU about your options. Our promotion runs through March 31st to save 1%, so we have some time to get to work! Give us a call at (585) 343-5627 or stop at our branch at 10 Jefferson Square in Batavia! We’ve now extended into 14 counties, so be sure to get in touch as you can save today!
