While it’s a good thing that today’s consumers have so many options available when it comes to financing a brand new or used vehicle, all of those choices can sometimes be overwhelming. However, if you are a member of St Anne Credit Union in New Bedford, the choice becomes much more clear. A credit union auto loan can save you hundreds of dollars compared to traditional bank loans and even more compared to auto finance loans. There are many benefits associated with opening up a credit union checking account at your local New Bedford CU, and discounted rates on loans is just one of them.
Before You Shop
The best time to start saving money on your new vehicle purchase is before you even set foot on the car lot. Work directly with the customer service agents and loan officers at St Anne to get pre-approved for purchase before you go. Knowing how much you can afford ahead of time will help prevent you from buying more car than you can pay for. Having a pre-approved credit union auto loan in-hand when you visit the car lots will put those pushy salesmen in their place and help you to navigate through the “haggle hurdle” without as much stress being put on you.
Before you visit your local credit union in New Bedford, it is also a good idea to think about how much cash you have on hand, how much money you think you can afford to pay each month for car payments, gas, auto insurance and repairs. This is what they are talking about when people talk about “living within your means.” Knowing how much you can afford comfortably without stressing or living paycheck to paycheck with uncertainty or stress is a much better plan for everyone involved. Once you figure out how much you think you can afford, stop by the St Anne New Bedford CU to talk with an agent and see about getting pre-approved for a credit union auto loan.
Beware of Long Term Loans
One of the latest tricks in the car selling business is to push a longer term loan on consumers. Instead of paying off the car in 48 or 60 months, which was the industry standard for many years, some companies are offering 72+ month contracts. In fact, an industry study revealed that the average car loan today stretches to approximately 67 months. Shockingly, the study also showed that nearly a quarter of the vehicle loans made in the second half of 2014 were between 73-84 months.
In addition to taking longer to pay off, long term car loans also have much higher interest than the typical credit union auto loan. The shorter the term, the better the rate in most cases. People who sign six year or longer contracts end up being upside down for many years before they gain any value on their new car purchase. What that means is that the difference between what you owe and what the dealer will purchase it from your for will be miles apart, leaving you stuck with that vehicle for probably longer than you would like.
People Who Know You, People Who Care
One of the best parts of joining a local credit union in New Bedford and becoming part of the membership is that you work with people from the local area who know you as an individual. Unlike large banks where customers feel like a number, credit unions are much more personal. Take St Anne Credit Union for example. We only serve local individuals and families who live or work in Plymouth and Bristol counties. As your local New Bedford CU, we are a member-owned, non-profit financial institution with over 3100 members. Established on August 3, 1911, we are the oldest credit union in Southeastern Massachusetts. Our goal is to provide our members with the tools, information and support they need to make sound financial decisions, which include getting a great rate on a credit union auto loan.
To find out more about all of our services, account options and investment opportunities, please browse through our website, call us at 508-993-0011 or stop by our location in New Bedford, Massachusetts on Union Street. Open a Share Savings account to join and explore other services, such as our credit union checking account, money market account, IRA and Christmas Club savings accounts. We hope to become your credit union in New Bedford!