Deal or no deal? Auto loan financing tips to consider

  • September 13, 2024
  • Financial Partners Credit Union

Deal or no deal? Auto loan financing tips to consider

Shopping for a new car can evoke a range of emotions:

  1. Excitement! A new car means dreaming of new possibilities, getting rid of the old, and bringing in the new. New adventures, road trips, space for a growing family—maybe you’ll even splurge on some cool new features. But then….
  2. Stress. Paying for a car, financing details, saving for a down payment—it can involve a lot of details and research. Which for many can often lead to….
  3. Confusion. How do you know which financing option is best? How can I keep my payments affordable? Is the dealership a good option for financing, or are there better options available?

 

Consider this when purchasing a car: who you select for your financing will be your partner in getting you from point A to point B - literally. You want a reliable partner who understands your unique financial needs and is working to get you the best overall deal. Financing through a dealership may seem convenient, but it could end up costing you more in the long run. Here are three reasons why you should consider auto financing with a credit union instead of a dealership.

  1. Typically lower interest rates. Historically speaking, Credit unions offer lower interest rates for new and used cars compared to dealerships. Lower interest rates means that over the course of the loan, you can end up paying less. Dealerships may seem like the convenient option, but double check the fine print for any hidden fees, prepayment penalties, or other “gotchas.”
  2. Personalized service. Sometimes you just want someone who gets you - and your financial situation. Credit unions are focused on building a relationship with you and addressing all your financial needs. Car dealers are interested in selling you a car and moving on to the next sale. Using a credit union for your auto financing can be the first step to enhancing your overall financial situation.
  3. Transparency and trust. The last thing anyone needs when making a major purchase is more stress. You can count on a credit union to give you transparent dealings with no hidden fees and clear terms.

Looking to purchase a new or used vehicle? Financial Partners has new and used car loans, and services like the Autoland concierge car buying service and AutoSmart, where you can view multiple dealers’ inventories at once.

Not sure where to start? Give us a call at 800.950.7328 or visit us by finding a location near you to get started today!