Given the expense of vehicles, especially brand-new models, it’s often necessary to get a credit union car loan to cover the costs. Fortunately, there are multiple places to go for a car loan but not all are created equal. Choosing the right lender, such as the best credit union for car loans, can make a big difference in the loan that you get and how much you pay in the long run.

Dealership Car Loans

Dealerships offer the convenience of one-stop shopping; however, they function as a middleman between you and a lender, which could cost you more money over the life of the loan. They also sell ancillary vehicle products like an extended warranty or GAP, at a significant profit.

Bank Car Loans

Most people are familiar with banks offering loans but it’s worth noting that banks can be less flexible in their lending guidelines, making it hard to qualify, and sometimes even charge a higher interest rate to turn a larger profit.

Credit Union Car Loans

You do need to be a member of a credit union to get a loan but an auto loan from a lender credit union like Members Trust often comes with several advantages compared to loans from traditional banks or other lenders.

• Competitive Rates: Credit unions are known for offering competitive interest rates on all loans. Since they are not-for-profit financial institutions, they can often provide better rates than for-profit banks.
• Flexible Terms: Credit unions typically offer flexible repayment terms, allowing borrowers to choose a repayment schedule that fits their budget and financial situation.
• Lower Cost Ancillary Products: In comparison to a dealership, you can save a significant amount of money purchasing an extended warranty or Guaranteed Auto Protection through Members Trust.
• Personalized Service: Credit unions prioritize member service, often offering personalized assistance throughout the loan process. This helps members understand their options and save money.
• Potential for Lower Fees: At Members Trust, you’ll find fewer fees associated with a vehicle loan, such as no application fees or early repayment penalties.
• Easier Approval: Credit unions may have more relaxed approval criteria compared to banks, especially for members who have a strong relationship with the credit union or a good credit history.
• Member Benefits: Being a member of a credit union offers access to other financial products, discounts on services, or opportunities for financial education.

Other Ways to Save Money

• Qualify for a rate discount – At Members Trust, you can get up to a .375% APR* discount off your approved loan rate when you bundle GAP AND Warranty protection.
• Increase your down payment – The more money you put down, the less you have to borrow so this can allow for a faster payoff.
• Buy within your budget – Cars are expensive so it’s more important than ever to stay within or UNDER your budget. The less you spend on the vehicle, the faster you can pay it off!
• Improve your credit score – Your credit score impacts the rate you receive on your loan, regardless of the lender. Working to bring your score up will help you save money on ALL of your loans.
• Pay it off early – Look for a lender who does not charge a pre-payment penalty. Whenever you are able, pay a little extra on your credit union car loan so that you can pay off the balance faster and save on the interest you pay over the life of the loan.
• Refinance – If you currently have a vehicle financed elsewhere, let us take a look to see if it’s worthwhile to refinance your loan for a better rate or shorter term, to save you money over the life of the loan.

Overall, getting an auto loan from Members Trust Credit Union comes with a lot of great benefits. Talk to us about your lending needs to see how we can help!