Credit Unions have Lower Rates on Auto Loans than Banks
That last point gets to the heart of why credit unions may be the best source for an auto loan.
You can almost always get a lower rate on an auto loan at a credit union than you can at a bank or another source.
Is it easier to get an auto loan from a credit union?
Credit union members are typically able to get credit products such as auto loans much easier than at regular banks or other lenders.
Are credit unions better than banks for car loans?
Credit unions offer the same financial products as banks, but they are much cheaper. Most people use their local credit union for car purchases because the rate is normally lower than dealer financing and because commercial banks are normally a percentage point or two higher than credit unions.
What are the disadvantages of credit unions?
There are fewer fees and higher savings rates. As a result of the advantage listed so far, credit unions typically offer free accounts with no minimum balance requirements. Fees are generally absent from credit unions. In the same respect, interest charged for loans and credit are often lower.
Photo in the article by “Mount Pleasant Granary”