Those looking to finance a vehicle may be looking at a credit union auto loan for getting the cash flow they need to drive off of the dealer’s lot. Among the variety of auto loan lender options available to consumers, credit unions occupy a specific space in the loan market. Here are some ways to decide if you should go with a particular loan offer from a local credit union.
If your credit union is offering an auto loan option, look at how your status as a member benefits you. This includes researching general rates for a similar loan on the open market. If the contrast looks good, talk further about getting into a loan agreement.
Another factor in whether you want to go with a credit union auto loan option is the amount of knowledge that the lender brings to the table about the deals that you are looking for. If you are just casually buying a random used auto from a dealership, a credit union loan can save you a lot of money and help you avoid dealership financing scams. However, if you are looking for a specific certified pre-owned vehicle deal, or looking to make a deal with a specific auto maker; a captive finance company could be a better option if your credit union doesn’t have the brand familiarity you want, or is not really in the business of covering a specific loan type.
Think about the above for figuring out which credit union auto loan fits your needs as a consumer.