Is It Better to Get an Auto Loan Through a Credit Union or Dealership?
Dealerships spend a lot of money on advertising their auto loans. There’s a reason for that – they make a good profit on auto loans. The convenience of being able to get an auto loan from the same place you’re buying your vehicle often appeals to car buyers.
Like with most things in life, convenience isn’t free. That’s why in most cases auto loan borrowers end up getting less advantageous terms when they go through a dealership instead of their financial institution.
Dealerships and credit unions are not always mutually exclusive. Some dealerships work with a variety of lending institutions, including local credit unions, to help car shoppers get auto loans.
The Benefits of Using Your Local Credit Union to Get a Car Loan
If you’re already a member of OnPath Federal Credit Union, it’s likely in your best interest to get your auto loan through us.
- You’re already a member (literally a part owner) of the credit union. One of the benefits of being a member is qualifying for slightly better rates on loans. Keep in mind that your banking institution wants to keep you as a customer, so they have an incentive to offer you some of the best rates available.
- Getting qualified is less of a hassle because your bank already knows you. They understand who you are, what your financial situation is and what kinds of rates you are eligible to receive. The entire borrowing process is easier and requires much less legwork when you go through a financial institution that already knows you.
- Working with your credit union is far less invasive from a financial standpoint. If you’ve ever tried to qualify for a home loan, business loan or personal loan before, you’re likely familiar with how uncomfortable and invasive the approval process can be. The approval process is generally accelerated and less intrusive when your lender already has your banking information.
- Lending money for auto purchases is one of our specialties at OnPath FCU. We know the process inside and out and can get you preapproved fast. We also understand how competitive auto loans are, which is why we’re committed to offering great low rates on car financing – it’s one of the perks of membership.
- Having all your loans and banking accounts at the same institution makes it much easier to keep track of your finances.
- Dealers want to be compensated for their effort when you go through them for an auto loan. The time spent by their auto financing team isn’t free. They generally make auto loans a profitable pursuit by marking up the rates for their customers. Your credit union doesn’t do that because auto loans aren’t an added service for your convenience – it’s just what we do.
We Can Even Help You Find Your Next Vehicle
Dealerships pride themselves on being a one-stop shop for car buying and auto financing. While we’re not technically an auto dealership, we do have some of our own resources to help you find your next vehicle.
If you’re looking for a new car in Louisiana, visit our Auto Buying Center. You can search through great deals on pre-owned and new cars, trucks, SUVs and recreational vehicles from preferred auto dealers. All these dealers work with OnPath FCU to help car buyers get great rates and terms on their auto loans.
Our Auto Buying Center has a lot of features that can help you find your perfect vehicle with minimal effort, including a:
- Virtual test drive tool
- Price curve tool
- Find better price tool
- Other auto research tools
Every OnPath FCU member who gets their auto loan through us also receives a myEZ Car Care Membership, so you save even more money on auto services.
You can also find affordable add-ons and product accessories with your OnPath auto loan, including:
- Payment protection to ensure unexpected life events don’t make your auto loan an unsustainable burden for you and your family
- Extended warranty to protect both your finances and your peace of mind
- Gap insurance that will prevent you from losing money on your new vehicle purchase if you ever get into an accident that totals the vehicle
Find Out Why OnPath FCU Is the Right Louisiana Credit Union for Your Auto Loan
Is it time for your family to invest in a new vehicle? The whole team at OnPath Federal Credit Union is committed to making your car buying and financing process as easy and smooth as possible. Find out what kind of rates you qualify for by calling us at 800.749.6193.