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Why Should I Get an Auto Loan From a Credit Union?

Why Should I Get an Auto Loan From a Credit Union?

Tax season is here, and we know the perfect way to invest your 2021 tax return. If you’ve been thinking about buying a new or used car, now is a perfect time. With interest rates at an all-time low, you can find yourself in a fresh set of new wheels at a fraction of the cost.

Set on your make and model? Ready to start comparing prices? Before you wire over those funds, make sure you are choosing the best possible auto loan in Mississippi. At Members Exchange Credit Union, that’s what you’ll find. Here’s why your local credit union is the premier choice when applying for a loan:

Financing Auto Loans Through Credit Union vs. Dealership

With the right credit union car loan, you could end up saving a significant amount of money on your investment. Dealerships are experts at providing you the best inventory to choose from at the best local sale price. At the forefront of your car-buying journey, dealerships are your right-hand helpers; however, financial institutions like credit unions are capable of ensuring ease and affordability in other regards. Consider these four key factors when choosing a financial institution for your auto loan:

1.Lower interest rates

Credit unions are not-for-profit organizations that reinvest into their members which makes them the preferred choice. A huge incentive for members to take advantage of credit union auto loans is the amount they save on interest rates. Generally, a credit union has rates 1-2% lower than the average bank rates. While this number may look minuscule, the difference between a 2.5% interest rate and a 4.5% interest rate is not. For example, if you were to finance a new $25,000 car at 4.5% interest, your monthly note would be $466 over the course of five years. At an interest rate of 2.5%, your note would be $444, saving you $1,320 throughout the life of your loan.

You’ll also rarely find a better interest rate at any dealership. This is due in part to the fact that dealers work with multiple lenders who select loan applications to work with based on credit score and can be more competitive with the rates they offer.

2. Personalized Service, Community Feel

At a credit union, you’re an owner, not a customer. Once you become a member of a credit union, you’re a shareholder of that institution. While the car buying process is similar to a bank, credit union, or dealership, credit unions make sure you feel taken care of long after your wheels hit the pavement along with your payments. Credit unions understand that life happens, and when it does, they’re here to provide you the flexibility you need. Your story is more likely to be heard than fall subject to “set-in-stone” underwritings and echos of red tape.

Not only do credit unions put you first, but there is also no one above you to take hold of your incentives. Credit unions don’t have to pay dividends to third-party investors which means higher rates on savings accounts and lower interest rates. So, you can save more of your hard-earned money, and you can make more by investing it into your local credit union.

3. Easy to Navigate Loan Process

Before the digital age, bank customers or credit union members were required to visit the location and complete the lengthy process of applying for a loan. Today, applications for auto loans at credit unions can be done over the phone, online, or at the dealership. Even if you are not yet a member, you can ask to receive information regarding your local credit union and become a member before the purchase is complete.

What’s even better, at Members Exchange, we aren’t like other credit unions. We provide more than user-friendly finances on your car-buying journey. Find the perfect vehicle for you easily through our Car Buying Concierge Service! From the comfort of your home, you can:

  • Take a virtual test drive
  • Use the Price Curve tool to verify fair pricing
  • Use the Find Better Pricing tool to compare dealership pricing
  • Receive myEZ Car Care Membership to save on auto service and travel
  • Receive Guaranteed Auto Protection
  • And more!

4. Auto Loans are in Our DNA

At Members Exchange Credit Union, we know auto loans like the back of our hand. With our pre-approval process, you can shop for your next new or used car with certainty. Regardless of where you make your purchase, we are there to help you connect the dots so that financing is fast, easy, and affordable. We’ll also match other financial institutions if you find a lower rate, which could reduce your rate by up to .10%.

What is the Preferred Credit Score for an Auto Loan?

Historically, banks and dealership lenders can choose who to lend to based on their credit scores. When working with a credit union, your chances of getting a decent interest rate and being approved for a loan are higher. As mentioned, you’re a shareholder of the institution, so your purchasing power comes first. Typically, a good score to have in order to acquire a lower interest rate is 700 or above; however, if your credit score falls between 500-600, you can still expect to be approved for the loan, only at a higher interest rate.

How Long Does it Take to Get Approved for an Auto Loan?

Dealerships can typically take anywhere from several hours to weeks to assess your financials. At a credit union, you’ll save time and money when applying for an auto loan before you shop. Applying for an auto loan at Members Exchange is simple and easily accessible online. You’ll know in a matter of hours whether or not you have been approved.

Finance Your Auto Loan with Members Exchange Credit Union in Jackson, Mississippi

So, you’ve browsed local dealerships, contacted a sales agent, and have even set aside your down payment – what’s next? Before you sign the dotted line and drive away in your new or used car, make sure you have the right financial institution backing you! At Members Exchange Credit Union, we are your financial experts, and we work for you! If you’re shopping for auto loans in the Jackson, Mississippi area, look no further. We’ll make sure you get the best possible rate and drive away happy. Apply online or contact us today to get started!