Are Credit Unions Better Than Banks For Car Loans?

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.

Is it better to get a car loan from a credit union or dealership?

The interest rate on loans from these dealerships can be much higher than loans from a bank, credit union, or other type of lender. Consider whether the cost of the loan outweighs the benefit of buying the vehicle. Buying a car is a big decision, especially when it comes to your money.

Photo in the article by “Army.mil” https://www.army.mil/article/154192/changes_to_military_lending_act_better_protect_service_members