When you’re ready to purchase a vehicle, there are a lot of things you’ll need to consider, including the type of vehicle you want and how you’re going to pay for it. For many people in northeast Wisconsin, choosing a local credit union auto loan makes the most sense. Credit unions offer competitive rates on a variety of loans, they have helpful staff who live in your area and can walk you through the loan process, and they are insured by the NCUA, or National Credit Union Association, ensuring your auto loan is secure.
If you’re looking for ways to make the best of your local credit union’s auto loan program, there are a few ways to do that. At Capital Credit Union, our staff is skilled at securing low interest rates and excellent terms. Below, we’ve compiled a helpful list of tips on how to make the most of your new auto loan.
Start a Conversation With a Credit UnionThe first step to making the most of your auto loan is to stop by a branch or visit your local credit union’s website to explore your options and secure a pre-approval. Take the time to understand the ins and outs of the auto loan process, including how to apply, how to make payments, how to get the best rate, and how to use your auto loan pre-approval letter to get the best deal when shopping for your vehicle.
With the help of loan specialists at your preferred credit union, you can find an affordable loan that meets your needs. Make an appointment to speak with a loan officer or explore your credit union’s website for advice and educational content on acquiring an auto loan or building a strong financial future. When you are more informed, you are better able to get the auto loan you need at a rate that makes sense for your budget.
Submit an Auto Loan Application EarlyIt’s not just submitting an auto loan application that’s important; the timing also matters. For the greatest benefit, you should apply before you head to the dealership. First, a pre-approval letter will be a valuable negotiation tool once you’ve picked out your vehicle—more on this in a moment. More importantly in the beginning, applying ahead of time will allow you to see how much of a loan you’re eligible for and, therefore, how much you can afford to spend on a vehicle.
Your credit union will consider vital information before they pre-approve a loan amount and offer you an interest rate, including your down payment amount, credit score, income, current debt, and so on. With an amount in mind, you can be sure to find a vehicle that fits your needs and your budget.
Filling out and submitting an auto loan application is straightforward. Some credit unions require members to apply in person, while others allow online applications as well as in-person ones. At Capital Credit Union, current or prospective members can apply for an auto loan online or stop in at one of our branch locations, and the process only takes a few minutes.
Secure the Best RateInterest rates can vary depending on the lender you work with, so shopping around for the lowest rate is in your best interest—no pun intended. By knowing your options, you’re better equipped to choose a loan provider that respects your consumer buying power. Financial institutions should make every effort to provide financial assistance to you, regardless of your needs or budget. Be willing to walk away if you’re offered a rate that doesn’t reflect your goals.
One of the many benefits of going through your local credit union for an auto loan is the competitive rates they offer. Credit unions are not-for-profit financial institutions that prioritize the financial security of their members and communities. For this reason, auto loan interest rates are typically lower at credit unions.
Leverage Your Auto Loan Pre-ApprovalWalking into a car dealership with an auto loan pre-approval letter puts the power in your hands. Pre-approval demonstrates you are a serious buyer and in good financial standing to purchase a vehicle. The sales representative you interact with may inevitably ask about your financing options, and they are likely to take you more seriously when you come prepared. They maywill be more willing to negotiate the sales price knowing you have the buying power to back up your offer. With your pre-approval letter, you’re more likely to get the deal you need.
Most car dealerships offer in-house financing for vehicles, but these interest rates tend to be higher or require larger down payments. Making sure you’re approved for your auto loan before you shop cuts out the financial middleman and can save you money. If the dealer offers to beat the rate of your pre-approval, be mindful of other terms of their offer that might negate the effects of the lower rate. Don’t be afraid to stand up for yourself and make it clear that you’ve already secured a low rate.
Utilize the Perks of Your Credit Union Auto LoanAuto loan programs at local credit unions often come with perks. Whether your credit union offers added insurance or protection for your vehicle or extra services to help you make the right purchase, understand the benefits available to you, and take advantage of them.
At Capital CU, we offer our First-Time Auto Buyer Program, designed for buyers with little to no credit. This program gives first-time auto buyers the ability to build credit through a maximum term of 60 months and 100 percent financing. Members can also utilize Capital CarFinder, which allows you to search the inventories of local car dealerships and receive a free CarFax report for vehicles that interest you. Once you’ve made your purchase, Capital CU continues to have your best interests in mind with Guaranteed Asset Protection and Mechanical Breakdown.
Your next car shopping experience can be made all the better by securing a low-interest-rate auto loan from your local credit union. Our financial experts at Capital Credit Union are available to provide insight and education on all our loan programs and are determined to provide you with the lowest rates available. Call to set up a meeting or stop by a local branch to start your auto loan journey. We look forward to getting you on the road with the auto loan and interest rate you deserve.