Paying For Your Car
If you're like most people, you'll probably need to finance your car unless, of course, you have thousands of dollars saved up to pay for it in cash. To help keep your monthly payments low, you'll want to make a down payment on your car. Although the credit union offers up to 115% financing, it's recommended that you make a 20% down payment. This is to reduce the amount of money you need to finance and help lower your monthly payments.
A good rule of thumb: your monthly car payment should not be more than 20 percent of your monthly income. (See preparing for your first car)
Our auto loan calculator can tell you how much money you'll need for a down payment, as well as calculate your estimated monthly payments. Be sure to check out our competitive loan rates. You'll quickly see that the Credit Union is your best bet for financing your car.
Dealer vs. Credit Union Financing
So what is the difference between dealer financing and credit union financing? Well besides the fact that we provide quality, personal service ... plenty! And most of it's in the small print. This is especially true for "zero-percent" or "1.99 percent" dealer offers. Many times these low rates are often only available to people with A+ credit. One late payment and the rate can jump up. If there's a rebate on your car, you can kiss that goodbye. Most dealer "low rate" offers don't apply with a rebate. In addition, these rates are sometimes only offered on slow selling models, leaving out the most popular cars.
Beware: Auto dealers exist to make money, and they're very good at it. However, the dealer cannot make money on financing with a 0% rate. So how do they offer such low rates? By making up for it elsewhere like raising the sticker price, adding costly options, or by lowering what they'll pay for your trade-in. The solution? Come to your Credit Union first and get pre-approved for your car loan. If there is a rebate available, take the rebate and use it as a down payment.
Applying for your car loan
When you're ready to get your loan, you can apply online 24 hours a day.
Next: Preparing For Your First Car