How Credit Unions Can Help Members Purchase a New Car

Since the COVID-19 pandemic, the prices of new and used cars have increased dramatically. The increase in the price of vehicles today is largely due to the increase in demand, problems within the global supply chain, and inflation. With the rising prices of cars, it is important to know your options for financial assistance with purchasing a new car, and credit unions can be very beneficial in the process of purchasing a new car. In this blog, we will learn about the ways credit unions can help their members purchase and finance a new car.

1. Pre-approval

Credit unions can offer pre-approval on auto loans, which can help members know how much they can afford to spend on a new car before purchasing one. With a pre-approved loan, members can have more confidence in their purchases and are able to negotiate better deals with dealerships.

2. Lower Interest Rates

Credit unions are known to offer lower interest rates than banks and other financial institutions. Members can take advantage of this when purchasing a new vehicle through auto loans. With lower interest rates, members can save a significant amount over time and pay less in monthly payments or interest as a whole.

3. Extended Loan Terms

At credit unions, members can spread their payments over a longer period of time to make monthly payments more manageable. This advantage allows members of a credit union to feel more comfortable and confident with their budget when shopping.5. Refinancing

4. Refinancing

Credit unions can often offer refinancing options to members with existing loans from other lenders. When a member refinances, they can get a lower interest rate or adjust their loan terms to better fit their financial needs.

Purchasing a new car can be a stressful and intimidating process, but there are ways that credit unions can help reduce any financial concerns in the purchasing process. Understanding and knowing your loan options and budget can help you select the right car and achieve your financial goals at the same time.