Is It Better to Finance a Car Through a
Dealer or my Credit Union?
When you’re shopping for your next used car,
it’s all too easy to get totally wrapped up in finding the vehicle that’s right
for you. Your search might begin online to narrow down options, and then you’ll
visit various dealerships to check them out in person, take them out for test
drives and so forth. What often slips off the radar screen, however, is the
auto financing you probably need to make a car purchase. This part of the process
tends to sneak up on you. But shopping around for the right car loan is every
bit as important as finding the right car. This article will give you guidance
on financing, including the debate about dealer financing vs credit unions when
it comes to choosing a lender and loan.
Auto Loan Shopping 101: Dealer Financing vs Credit Unions
There is a generally
wide-held belief that in the dealer financing vs credit unions debate, the
credit unions always win. Where does this idea come from? You have to know a
little bit about credit unions versus other lenders to understand why people
believe this.
In a credit union, the
depositors are members who also own the bank, which is run as a non-profit
organization rather than a for-profit bank. Like most for-profit companies, regular
banks are primarily concerned about making profits for their shareholders. By
contrast, the non-profit credit union exists to serve its members, so they tend
to naturally be more customer-centric than most banks. This can lead to some
definite perks, like higher interest rates on deposits, and often lower
interest rates on loans than are found at most regular banks. The downside of
credit unions is that they don’t typically have as many branches as regular
banks, and might not have all the latest banking technologies people have come
to expect.
When it comes to car loans,
credit union interest rates can be lower than most banks, beating them by as
much as 2% in some cases. The actual impact of that difference is relatively
small in terms of your monthly payment. You might save only $15-$20 a month,
but it does add up to significant savings over time. If you have the time to
put into it, go ahead and check out several different credit unions in your
area to see what kinds of rates they’re offering to their members and compare
those to regular banks and you’ll see the difference.
But who wants to put as
much time and energy into loan shopping on top of what you’re already devoting
to car shopping? When it comes to financing your next used car purchase, the
good news is that there is a better way. All you have to do is work with the
right used car dealership!
Dealer Financing Done Right is a Better Way
Most people are going to
assume dealer financing is never the best option. They’ve heard how dealerships
have turned financing into a lucrative profit-center of their operation, often by
offering loans with terms that put more money in their pocket rather than
having your best interests in mind. While that may be true in some cases, it is
not true in all cases, which is why we’re always careful to say “reputable
dealership” when we talk about issues like financing. Dealer financing done
right at a reputable dealership has some big benefits.
A good dealership will have
spent years developing relationships with multiple lenders, which is the most
critical aspect of finding a good loan for you. You fill out the dealer’s
application to give them the information lenders need to see and then the
dealer will send that information to their whole network of lenders. Each one
of those lenders wants your business, which means they’re all competing with
each other to be the winner. But when lenders compete for your business, the
real winner is you. All the different offers from the network will
come rolling into the dealership, and then it’s just a matter of selecting the
best one for you.
In other words, the
dealership just saved you hours and hours of time by going loan shopping on
your behalf! You didn’t have to fill out multiple applications at various
lending institutions. You didn’t have to evaluate each offer to see what’s in
the fine print. You didn’t have to compare the various offers to figure out
which one is the best. A good dealership does all that for you. And to answer
the debate about dealer financing vs credit unions, a reputable dealership will
have at least one if not several credit unions in their lender network. With
dealer financing done right, you’re getting the best of all worlds without
lifting a finger!
.
Power Chevrolet has Financing for All
At Power Chevrolet used car
dealership serving Marion County, we’ve built a fantastic reputation not just
for offering great cars at good prices, but also for going the extra mile to
get the best car loans possible for our customers who need to finance their
purchases.
We feel very comfortable
calling ourselves a reputable dealership because we know we’ve earned it. But
we don’t expect you to just take our word for it. All you have to do is check
out the reviews people have written about Power Chevrolet, or Power Auto Group
on sites like Google,
and Yelp Between those three sites you’ll find the enthusiastic opinions of
thousands of our satisfied customers.
Yes, you can go out and do
your own loan shopping. But by the time you’ve collected compared offers from
three different places, we think you’ll realize it’s totally not worth the time
and effort. Let Power Chevrolet go loan shopping for you! We’ve spent many
years developing our network of financing companies, which currently includes
as many as 30-40 different lenders. Can you imagine how long it would take you
to visit 30-40 different places, whether offline or online, to comparison shop
loan offers? Auto City does it for you, literally in minutes.
You can even start the financing process online to get
approved. Our online application takes less than five minutes to fill out. We
review the information you give us and contact you if we have any follow-up
questions. Then we send the application out to our network of 30-40 lenders.
They’re offers come rolling in and we then figure out which one deserves your
business. And to bring this back to the dealer financing vs credit unions
debate, Power Chevrolet does in fact have credit unions among its network of
twenty different lenders. Also included in our network are lenders who
specialize in loans for people with challenged credit or who have filed for
bankruptcy. When we say “financing for all,” we mean it!
If it’s time for you to
start shopping for your next used car, we invite you to not only take a look at our current inventory of
high-quality vehicles with low miles, but also to discover how we rock at car loans!
#powerchevrolet; #powerautogroup; #chevroletbyalex; #findyourroad ;#financing
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