Dealer or Credit Union – Where to Find the Best Car Loan
Many consumers do not belong to a local credit union but there is a reason why they should. When it comes to loans, a credit union always has some of the best rates in town. Even when it comes to a car loan or auto financing, the outside organization will win more times than not. Here is a breakdown as to why a credit union might make the most sense for you.
Easy to Join: most credit unions charge a membership fee to become a member of their organization. Some have very restrictive membership reach so be sure to research which credit union might be right for you. Typically, you pay a small membership fee and you have access to all of the services the credit union has to offer. They typically offer anything from a checking and savings account to all types of loan products including car loans, mortgages, credit cards and some even offer RV, boat and personal loans. These are typically full-service financial institutions offering a wide variety of products and services to members. A credit union is owned by its members. Meaning, if you are a member, you are a part owner in the organization. This is one of the primary reasons they are able to offer such competitive rates on their loan products. They are also not for profit organizations as well so as a member, you are able to take advantage of cost savings you would typically pay to a middle man.
Not always the Cheapest: many times the credit union will offer lower auto finance rates than the dealer. However, when the manufacture is wheeling and dealing with 0% and special incentive rates, no lender can match what the dealer has to offer. It pays to do a comparison on whether taking the rebate and paying a slightly higher interest rate is more beneficial to you. These are simple calculations that you can find online.
You can find out more about auto finance and your best options for getting a car loan online at OpenRoad Lending.
About the Author: Chris Goodman has been in the auto finance business for more than 20 years and has assisted thousands of consumers with their car loan needs. His articles are insightful and assist consumers in understanding the ins and outs of auto finance. OpenRoad Lending is a lender with a consumer centric website providing auto financing solutions to consumers in the process of purchasing a new or used vehicle or refinancing their existing auto. Visit the website at http://www.openroadlending.com for more information about how easy it easy to get a car loan.
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