You’re ready to buy a car, but you need to figure out how you’re going to finance it. The good news? You have options. You can either finance directly through the dealer, go through an online lender, or get a loan from a bank or credit union. Which is best? That’s what we’ll discuss in this article.
It Can Be Less Time Consuming to Get Financing Directly at the Dealer
Getting a loan at the dealership can be one-stop-shopping. You can show up, pick a car, and finance the car all in one place.
You Can Get a Credit Union Loan at the Dealership
CUDL (Credit Union Direct Lending) allows you to apply for your loan and sign all your loan documents directly at the dealership. CUDL expedites the entire vehicle purchase, allowing you to process all your paperwork on site through your financial institution – WECU! It’s helpful to get pre-approved through the credit union prior to car shopping so that you understand the terms that you qualify for when you’re on the lot. That way, when you find your dream car, you will be ready to finance through WECU at participating dealerships.
A Financial Institution May Have Limitations on the Age of the Vehicle
Depending on the financial institution, you might not be able to secure financing for a used vehicle older than a certain age. WECU lends across all vehicle ages depending on your creditworthiness. Older collateral can mean more risk to you and the credit union, so it’s important to understand the condition of the vehicle you’re considering. If the vehicle you want is an older vehicle, we highly recommend reaching out to a WECU Loan Officer for pre-approval prior to going to the dealership.
Consider Early Pay Off Penalties
When you pay off a loan earlier you pay less interest. Some lenders have penalties if you pay your loan off early. Many credit unions do not have pre-payment penalties – WECU is one of these credit unions! You are welcome to pay your loan off as quickly as you’d like with us.
Additional Products (aka Add-ons) at the Dealership
When purchasing a vehicle through a dealership they will have a slew of other products that consumers can be cross sold when purchasing a vehicle. They include things like guaranteed asset protection (GAP), etch, sealants, key protection, warranties, service contacts and much more. Make sure you know what products are best for you and the vehicle you are purchasing.
Manufacturer Financing Can Be Amazing
Many manufacturers offer certain financial perks such as 0% financing for a limited time, dealer rebates, and cash back. These terms can be hard to beat, but always make sure you’re aware of the fine print. A couple factors to consider:
Car Model Availability– Specific models might not be a part of the 0% financing special offer. It might be limited to what is in the dealer’s current stock.
Term Limits– Sometimes the 0% financing is only available for shorter-term loans, which means higher monthly payments.
We’re Here to Help
If you have questions about your options and the car buying process, schedule a meeting with a WECU Loan Officer today.