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Here's Why Credit Unions Are Great Places for Car Loans

Here's Why Credit Unions Are Great Places for Car Loans

Car shopping can be a daunting process. Couple the seemingly endless selection of upgrades and add-ons with the variety of financing options presented by the dealer, and you have a recipe for overwhelm. You can avoid the hassle of negotiating financing through a dealer by securing credit union financing where the process is quick, easy, and painless. 

Here's why credit unions are a great place for auto loans.

Credit unions offer multiple financing options.

Auto loans aren't one-size-fits-all. A credit union offers you more than one way to meet your financing goals, whether that means shorter loan terms, lower payments, or refinancing. For example, members looking for an electric or hybrid vehicle can couple a low-interest rate auto loan with a BED Energy Services buyer rebate for a great deal.

Credit unions don't require perfect credit histories.

A perfect credit score isn't necessary to secure a competitive interest rate on your next new or used auto loan. Credit unions understand that members are at different points along their financial journey. Some members may just be starting out and have a limited credit history. Others may be in the process of rebuilding credit. If needed, a credit union can review your personal circumstances before making a lending decision.

Credit unions help you increase your negotiating power.

Walking into a car dealership without a plan can leave you vulnerable to high interest rates and overspending. But a credit union can get you pre-approved for an auto loan before you open the showroom doors. With check in hand, you can increase your negotiating power and simplify the car buying process.

Credit unions give you access to the lowest auto loan rates available nationwide.

There's a reason credit unions are known for offering low-interest rate loans and higher earnings on deposits - it's true! The NCUA Credit Union and Bank Rate tracks the national average rate each quarter. According to their data, you can expect to slash 1 - 2% off your loan rate when choosing a credit union over a bank for new or used auto financing.

Explore low-interest rate auto loan financing at Vermont Federal. Have questions about which auto loan option is right for you? Contact us at (888) 252-0202 or by email at memberservices@vermontfederal.org. Or, if you already have a car picked out, apply now!

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