When it’s time to buy a new car, most of us need some type of financing to pay for the vehicle. While there are a variety of options for auto loans, some are more consumer-friendly with better interest rates and deals than others. There are several reasons why a credit union car loan is a great choice.
Car Loan Basics
When shopping for a new or pre-owned car, you're also shopping for a car loan. Savvy car buyers will do their research to find the best car loan that suits their unique situation. Be sure to learn about the loan eligibility requirements and all the important details that directly impact the amount of your monthly payment as well as your loan term. Things like your credit score and lower interest rates mean lower monthly payments… and for a shorter amount of time. Doing business with a reputable lender like your local credit union means a more personalized experience and potentially better payment terms.
How Do Credit Union Car Loans Work?
Credit union car loans offer great opportunities for car buyers and often provide benefits that other car loan lenders don’t. Credit unions are owned by their members, so instead of paying shareholders, profits earned above expenses are returned back to their members in the form of lower rates and higher earnings on savings accounts.
And although credit unions do require that you be a member to obtain a loan; fees to join are typically minimal, ranging between five and twenty-five dollars. Once you're a member of a credit union, you usually can apply in person at a local branch or conveniently online. Some credit unions also offer the ability to apply for a car loan over the phone. Once submitted, your credit union car loan will be processed quickly, which is one of the many benefits of a credit union car loan. Here are some additional benefits of using a credit union vs. bank (or other lender) for car loans.
5 Major Benefits of a Credit Union Car Loan
1: Lower Interest Rates
Since credit unions are not-for-profit organizations, there are no shareholders to pay. As we mentioned above, profits earned above expenses are returned to members in the form of lower fees, lower loan rates, and higher earnings on savings accounts.
Reveal tips on how to save time and money while you are buying and financing your next car by downloading our guide:
2: Fast Answers
A quicker loan process is a huge benefit of applying for a credit union car loan. Since there are no large, corporate bank rules to follow for a credit union car loan, car buyers will receive friendly, personalized assistance from local credit union lending specialists. This means a more streamlined process for members, making it easier and with a faster turnaround so you can be driving around in your new car instead of waiting for an answer on your auto loan.
3: More Flexible With Loan Approvals
Credit unions offer different programs designed for different car buyers. If you have less than perfect credit, some credit unions offer a program focused on your unique situation. Peach State’s Fresh Start Auto Loan is a second chance auto loan program that not only helps you into a vehicle but can also help improve your credit score. If you’re a first-time car buyer, there are also auto loans made for you! Peach State’s Ready, Set, Drive! The program is a custom car loan program for members ages 18-26 purchasing a vehicle for the first time.1
4: Exclusive Car Buying Service
Your local credit union can also save you money and time when buying a new or pre-owned car if they offer an exclusive car-buying service. Auto Assistance, Peach State’s car buying service, takes the stress out of vehicle shopping. You’ll have a personal shopper who will help every step of the way – from finding the right vehicle to negotiating the best price, and then delivering it directly to you!
5: Personalized Service and Extra Member Benefits
Since credit unions are known for their personalized service, members should expect to receive individual attention and guidance throughout the credit union car loan process – from application to approval. Extra benefits like working one-on-one with your local credit union lending specialist to secure the perfect car loan that fits your needs and budget, help with navigating the car loan application process, and guidance to assist you in making the right decisions about your car loan are just a few ways members can benefit from a credit union.
Take Advantage of These Benefits with Peach State
At Peach State, our lending specialists look forward to helping you through the auto financing process and purchasing a new vehicle to fit both your lifestyle and your budget. Contact us today to choose a credit union auto loan that's right for you.
For more details on how to find the best cars and car loan for your needs and more tips to save you time and money on your car-buying journey, review our "Car Loans 101: Car Buying Made Easy" complete guide!
1 Certain conditions apply.