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Financing Strategies

Why Dealership Financing May
Not Be The Best Option

Have you finally decided to purchase a new car after months of searching for the perfect one? Or do you plan on enjoying the warm weather with a new boat or RV for your summer adventures? Whether you’re thinking about buying a new car, boat or RV, you may be looking for the lowest and most affordable payment option. When choosing between financing at a dealership or credit union ask yourself which one will be more beneficial in the long run. There are many reasons why financing your vehicle at a credit union could be the right choice for you.

Know What’s in Your Wallet

Before going on a shopping spree it’s a good idea to know on how much money you plan to spend. By visiting a credit union, in person or by applying online, you can get preapproved to know exactly how much you can afford to spend before heading to the dealership. This can also help you keep your budget on track and help you avoid the temptation of spending more than your budget can afford. If you’re not ready to purchase right away, your preapproval from LOC is good for 60 days, giving you a little flexibility with your purchase.

Cost of Convenience

While dealer financing may be easier, is it worth the difference in what you would be paying over the length of the loan with a higher interest rate? It may be possible to take advantage of a 0% financing being offered by an auto manufacturer’s financing arm. However, often times financing is being provided by a financial institution and can be higher because the dealership gets a cut of the deal. If the rate seems high to you, do some rate shopping before signing on the dotted line. If saving time is a concern, get preapproved through your credit union to save time and money on your loan. LOC provides a quick and convenient option for people looking for the best rates while running on a tight schedule.

Refinancing Your Loan

Perhaps you decided to finance at the dealership where your vehicle was purchased. Soon, you notice that the interest rate is digging a giant hole in your wallet. It’s not too late to contact a credit union. With auto rates as low as 2.74% and boat/RV rates as low as 3.99%, our team of experts can help get your loan payments on track. While 1-2% lower of an interest rate may not seem like much, it could add up in the long run, saving you hundreds, even thousands—especially if you are able to reduce the length of your loan. With low-fixed rates and up to 100% financing, we will work with you to ensure your budget stays on track. If your credit score has improved and you’re in search of a lower rate, you may consider refinancing. Refinancing a current loan could be a great option for you and your finances in many situations.

Credit Unions Provide Personal Connections

Financing at LOC gives you the opportunity to build a relationship with one of our financial experts who can steer you down the right path and answer any questions you may have before, during or after the process. Plus, you’ll be able to easily manage your loan through our mobile app or online banking, without having to set up your account with another provider. No matter which adventure you plan on taking this summer, choosing the best option when financing a car, boat or RV can be tough. Ultimately, financing at a credit union can provide a number of advantages when compared to dealership financing.

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