Buying a car is always exciting, whether you’re looking for your very first car, or finally buying that brand new luxury model you’ve always wanted. When it comes time to consider loan options, many people immediately go to a bank, but that’s usually not the best option.
At Valley Credit Union, we offer auto loans with great benefits. Today, we will look at some of the most important advantages of credit union auto loans.
How Are Credit Unions Different than Banks?
Credit unions are not-for-profit cooperatives -- they are member owned. Like banks, credit unions offer a wide variety of financial services, including making and offering loans.
Unlike banks, credit unions don’t have large corporate salaries and don’t need to pay dividends to stockholders. This allows credit unions to offer their members loans with lower interest rates, better payment options, and other perks.
4 Advantages of Credit Union Auto Loans
Credit union auto loans help you save money. Plus, credit unions are able to put your needs first and create a plan to match -- not the other way round.
- Better loan rates: Credit unions offer lower auto loan rates than banks, according to national averages.
- Comprehensive vehicle options: Don’t settle for less than the car you truly want. At Valley Credit Union, our auto loans include cars, trucks, vans, and classic vehicles.
- Flexible payment options: We offer terms up to 84 months and financing up to 100% of Blue Book or purchase price, plus no early payoff penalties. You can even have your payments deducted from your payroll.
- Help with the buying process: We partner with Auto Mentors, who can help you throughout the car buying process to make sure you get the best deal.
Let’s look at a few of these advantages in more detail.
Flexible Auto Loan Options
If you need an auto loan, credit unions tend to offer more flexible payment options. At Valley Credit Union, that means we work with you to customize your payment plan to fit your lifestyle. Are you planning to buy a car together with a partner or family member? Need your parents to cosign for you? No problem! We understand that everyone’s situation is unique, so we offer a variety of flexible payment options, including:
- Cash
- Automatic (from checking or savings)
- Payroll deductions
- Military allotment
- Many more -- we can work with you to make a plan that’s right for you
Credit Union Auto Loan Rates Are Competitive
Credit union auto loan rates are lower than banks on average, according to data from the National Credit Union Association. For used car purchases, credit unions offer rates that are more than 2 percentage points lower on average than those offered by banks.
If you choose a longer term loan, or a loan with 100% financing, lower interest rates can translate to big savings in the long run.
The Valley Credit Union Difference
At Valley Credit Union, we love our community here in Salem, Oregon. When you work with us, we are on your side every step of the way. We start by understanding your needs, and then we collaborate with you to build a plan from there.
Ready to get started? We offer free rate quotes. Send us a message, stop by our office, or apply online.
About the Author
Justin Roberts, Vice President of Lending
Justin Roberts is our Vice President of Lending and has been in the financial industry for over 18 years. He is an Oregon State University Graduate and has just completed Western CUNA Management School. When he is not focused on helping the members at Valley, you will find him coaching his two sons and volunteering his time to help develop the youth in our communities through sports.