One of the most important considerations in buying a new car or used car is financing. With a variety of options available, most people don’t even know where to start. Doing research and planning prior to purchasing a car can mean the difference of hundreds of dollars over the life of your loan. Credit unions can be a great option for many buyers.
Advantages of Credit Unions
- Member and Community Oriented: The processes in obtaining a loan at a credit union are almost identical to a traditional bank; however, credit unions are more apt to work with their members if they encounter financial difficulty during the term of their loan. With a community focus, credit unions can offer a more personal experience.
- Competitive Rates and Terms: Although credit unions may be in a smaller network than some banks, they tend to offer some of the lowest rates available with terms that work best for the buyer.
- Easy and Friendly Loan Process: Applying for membership and an auto loan with a credit union is easier than ever. Options are available which allow customers to complete paperwork ‘face-to-face’ with a loan officer or even at the dealership.
- Member Bonuses and Perks: Not only do credit unions offer some of the lowest rates, but they also have exclusive perks that banks don’t offer. Having a local base can be a huge benefit for members as offers may be available to make membership even more valuable.
- Non-Sales Approach: Since credit unions work for their members, they are not pressured to get more money in their ‘pockets’ like lenders who get bonuses for approved loans.
Steps in Finding a Credit Union Loan
- Determine Budget: It’s vital to set a budget prior to choosing a car since it will help avoid getting into a situation where payments are higher than what is manageable. Using an online payment estimator, it’s easy to look into standard rates and what type of monthly payment can be expected at various purchase prices.
- Check Your Credit Score: Even though the credit union will run a credit report, it can never hurt to be knowledgeable on your financial status. Having this information can also serve as a bargaining chip in getting a lower rate.
- Contact the Dealer: Ask the dealership which credit unions they work with in advance of choosing a car. By looking into each option before-hand, time can be saved in the financing process and the benefits of each can be reviewed in advance in order to make the best decision.
- Pick Your Car: Whether it’s a new car or a used car, be sure to look at options within the budget.
- Negotiate: Aim for a lower overall purchase price instead of a lower payment. If a car is purchased at a lower price, monthly payments will also be lower and interest may be less over the life of the loan.
- Sign the Paperwork: The dealership should allow the option to complete all of the credit union paperwork at the time of purchase. Make sure to take any brochures or additional educational materials offered to review and maximize benefits of a credit union membership.
The friendly and knowledgeable sales and financing team at Rick Case Honda can help in this entire process. With an assortment of financing options available and an expansive selection of new and used cars, Rick Case is an excellent choice for a Honda dealership in the Miami, Ft. Lauderdale and Davie, FL area.