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Auto Financing Dealership vs. Credit Union

May 17, 2018 - Posted by: Rocky Mountain Credit Union

 

Car dealers will do about anything to get your attention. It's important that when you are buying a car, you are purchasing what is right for you and not because a salesman convinced you that you needed that Mustang. The first step of buying a car is knowing how much you can really afford. You don't want to end up living in your new car because you can no longer afford your rent. 

Paying for your car doesn't have to be an overwhelming challenge for you to overcome. By simply knowing what options exist and how you can maximize your money, you can find a car loan that is going to be the best for you in the long run. You can choose to finance your new car through the dealer or through a lender.

Here are some factors to look into for your next car purchase financing:

Getting Approved

Getting a loan means that someone will check your credit history. There is a fear that comes with this, where most people believe that credit checks will ding your credit score. But this is not always the case. As long as you are not authorizing multiple 'hard pulls' or checks of your credit, your credit score should not be affected. If you have had credit issues in the past or have a poor credit score, you have options too. When you talk to a credit union, you have the opportunity to tell your story and explain your credit score. Credit unions are more likely to listen to you, work with you, and understand you. And as a result, they will do whatever they can to work with you and your unique situation. When you choose financing through an auto dealership, someone else is acting on your behalf. These people are not as experienced in financial counseling you or your story and can't give you the deal you need - or deserve.  

Rates

With a new car comes a car loan, and with a car loan comes an interest rate. Interest rates are dynamic and can change  based on a variety of factors. A high interest rate can significantly increase the end cost of your car. That's why it is important for you to get the best deal possible on your loan. The good news is, if you finance your car through a credit union we will work with you to give you the best possible interest rate. A dealer can't necessarily say the same. Dealers often mark-up the already high interest rate to make extra profit in the sale. Make sure you compare all of your options before you commit to any loan or interest rate to make sure that you are doing what is the best for you. 

Flexibility

Because Credit Unions are non-profits, we focus on our members and what we can do to best benefit them instead of focusing on how to turn the highest profit. This extends beyond just the money side of things to your experience with us, your repayment plan, and your peace of mind. Lenders will also work with you to get your loan approved, but their intentions may be different than a Credit Union's. 

Buying a car is a big deal. One that takes a lot of time and research. Make sure you know exactly what you are getting and how it fits into your lifestyle. Don't let any one pressure you into making a decision because that's what they want you to do. You know what is best for you, and it is important that you get it. If you are looking to purchase a new or used car vehicle, contact the experienced representatives at Rocky Mountain Credit Union. We promise to give you exactly what you need, unique to you and your lifestyle. 

 When it comes to buying your new automobile visit our page on the car buying process

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Calculate your auto loan rate at RMCU

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