18 Feb

Do Credit Unions Offer Better Car Loans?

Credit Union Auto Loan FInancing

Are you considering buying a car? You’ve probably started researching interest rates on auto loans from banks and dealerships, but there’s another option that you might not know about – credit unions to finance your purchase.

Credit unions offer savings and checking accounts, loans, and other financial services, similar to banks. The difference is that credit unions are member-owned not-for-profit organizations.

Instead of charging members fees for using their services, a credit union gives back to its members by offering them higher savings and investment return rates and lower interest rates on loans.

Having a car loan from a credit union could possibly yield lower interest rates, lower minimum loan conditions, and better lending approval chances.

What Makes Credit Union Auto Financing Different?

There are several benefits to using a credit union when it comes to financing your vehicle, as opposed to a dealership or bank.

You could have a better chance of getting a loan accepted. Since credit unions are smaller and concentrated on their communities, they appear to have a greater understanding of members who have less than perfect credit scores. If you have a limited credit history, that can make a credit union a much better option than a bank.

Credit unions commonly offer lower interest rates than banks or car dealerships. Since credit unions don’t rely on income the way banks do, they don’t have to make as much money on your loan. But don’t worry, the method of getting a loan remains very similar. At credit unions, the loan application process typically consists of checking your name, salary, work details, and credit history. You may even receive a decision quickly with the local decision-making after your application is complete.

When Should You Finance a Car Through a Credit Union?

If you are just starting to build credit or have a thin credit file, a credit union may be more likely than a bank or auto dealer to approve you for an auto loan.

If you are already a credit union member, it makes sense to see how their loan conditions compare with those of banks or dealerships. Before you visit the dealership, you can get pre-approved auto loans from your credit union to give you more negotiating power.

Obtaining a car loan through a credit union can come with a range of benefits depending on the practices of the individual credit union such as car buying options through Credit Union Direct Connect and AutoTrek. As a member, you may find lower interest rates and lower loan minimums.

To see if a credit union is right for you, research credit unions in your area, compare offers from different lenders and choose the one that suits your budget and financial situation. If you have any questions regarding RMLEFCU’s auto loans give us a call at 303-458-6660 or email lending@rmlefcu.org. Let’s get you in a new car!

17 Sep

How to Get the Best Deal on Used Cars

Used Auto Loan

Shopping for a used car is like going on a treasure hunt. There are a lot of used cars out there and finding a good deal on a car that meets your needs and fits your budget can be quite challenging. Here’s what you need to know to get the best deal on a used car.

Set Your Budget

Deciding how much you can spend on a car and how you are going to pay for it should be the first step. There are really only two ways you can pay for a car, in cash or by taking out a loan. If you’re paying in cash, budgeting is simple. Don’t spend all your savings and remember to set aside money for registration, insurance, maintenance, and repairs!

Most people take out a car loan so they can protect their savings. It’s smart to get preapproved for a car loan. At RMLEFCU you can get an easy pre-approval to see what fits in your budget. With our easy application process and quick, local decision-making, you’ll get a pre-approval letter ASAP!

Finding Your Car

The internet is a great car shopping tool, especially for used cars. Take some time to choose the right car for you and your lifestyle. Narrow your search by making a list of must-have features and search for models with those features.

As a member of RMLEFCU, you have access to extensive car buying services available through Credit Union Direct Connect and AutoTrek to make finding your perfect car easier! As you move forward with your used car search, build a list of three target car models to research in more detail.

Negotiate the Best Price

 Negotiation doesn’t have to be stressful! Especially if you’ve done your research and have a pre-approval on a loan. Compare the seller’s asking price to the average market price, chances are, the seller is asking more than the market average.

When you bargain with a car salesperson, keep in mind you’re dealing with a pro who knows all the tricks. Don’t focus on a monthly payment. If you have a pre-approved loan, you’re a cash buyer as far as the dealer is concerned and you should negotiate on the price of the car, not the size of the monthly payment. Always be ready to walk if you’re not making progress toward a deal.

RMLEFCU has great car buying services for members. If you have any questions on our car loans and car buying services,  give us a call at 303-458-6660 or email us at lending@rmlefcu.org.

13 Aug

How to Get the Best Auto Loan

new car guy in car keys happy car loan

Finding your dream car is only half of the battle. The other, and quite possibly harder, half is finding the best auto loan rate. If you’re going to borrow money for your purchase, the loan you choose is extremely important.

If you borrow wisely, you can enjoy two important benefits. You’ll spend less on your vehicle, and you’ll have the flexibility to change vehicles and fund other goals within a few short years. Properly planning for a loan before you shop for a car can improve your chances of receiving the loan and car that fits your budget and your style.  Here’s how to get the best deal for your auto loan.

Shop the Loan Separate

Before starting to negotiate on the exact car and price you want, you should begin your loan application process. You can prequalify for a loan which will enable you to set a budget for yourself and have leverage at the dealership. RMLEFCU offers prequalification with auto loans and through September 2019, there is a limited time Relationship Rate offer that’ll knock .75% APR* off your auto loan!

Shop the Total Loan

The only time you should consider the monthly payment is when you have privately calculated how much you want to spend for your car. After that, monthly payments are out of the discussion. Some lenders may focus on the payments to persuade you to borrow more money by extending the number of months in your term. This way, they make more in interest and you have to keep your car longer.

Utilize a Credit Union

A credit union is a nonprofit organization that returns profits to its members through higher savings rates as well as lower fees and loan rates. Membership comes with benefits. Credit unions generally offer lower interest rates than banks do. If you have poor credit, a credit union may be more flexible than a bank. Credit unions build relationships with their members that allow them to offer a more personalized experience. RMLEFCU is Colorado’s only law enforcement credit union and our service to our members is unparalleled. Be sure to check with us before settling on an auto loan with a higher rate!

Your financial situation and the type of vehicle you’re purchasing are key factors in determining the type of lender that’s best for you. If you can’t qualify for a car loan or are being offered high-interest rates, consider getting a cosigner, saving up for a larger down payment, or taking some time to build your credit. If you’re ready to take advantage of RMLEFCU’s limited-time Relationship Rate offer and knock off an extra .75% APR*, contact us now at lending@rmlefcu.org or give us a call at (303) 458-6660.