4 Reasons to Get Auto Financing from a Credit Union

Many people get auto financing in all of the traditional ways. They use their auto dealer or a bank to get the financing they need. However, many people overlook a viable option that could actually be better for them. A credit union provides the same services that a bank does with a few advantages. Here are a few reasons that you should get auto financing from a credit union.

1. Cheaper Rates

The biggest thing that you are looking for when you get an auto loan is a cheaper rate. Saving money is at the forefront of your priority list. Therefore, if you can save money at a credit union, you should definitely consider it. Credit unions are set up as non-profit organizations. As such entities, they do not pay taxes of any kind to the government. This means that their operating expenses are much less than an equivalent bank. With this type of competitive advantage, they can offer you some serious discounts on your rate. They pass the savings on to their customers. With a cheaper rate, you could cut money off of your monthly payment and end up spending thousands of dollars less overall. 

2. Fewer Fees

When you finance with a credit union, you will run across fewer fees than you do at other places. Besides using their tax savings to give you cheaper interest rates, they also charge fewer fees as a result. If you have a late fee, it will most likely be less than it would somewhere else. They may have lower closing costs on the loan as well.

3. Different Atmosphere

The atmosphere around a credit union is decidedly different than that of a bank. When you borrow money from a bank, you are thought of as just another customer. The bank knows that they have to have a certain amount of you to make a certain amount of profit. With a credit union, they treat you a little differently. Their customers are actually considered owners in the bank. If you have an account with a credit union, you actually get to share in any profits that are made. They consider themselves a valuable part of the community and look at you as a neighbor. With this type of arrangement, things are a little more relaxed and friendly. It is much easier to do business with a credit union overall.

4. Modern Conveniences

When you do business with most credit unions, you will receive all of the modern conveniences that you are used to. You can typically look at your account online, pay your bill, and do a number of other things from your computer. Credit unions typically have several locations in your local area that you can do business with as well. If you want to drop your payment by a branch, you should have no trouble finding one to work with. This gives you the same convenience that a bank offers with a little better service. 

 


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