This blog is for educational purposes only, not an offer of credit or advertisement for current loan terms. It does not provide legal advice. Refer to our loan web pages or consult professional advisors for specific information.
What Are Credit Union Auto Loans?
Credit unions are similar to banks except the members own the credit union. The goal of a credit union is to build a financial community that benefits all members while banks strive to make money for the shareholders. Credit unions are typically more focused on serving the local community than national banks.
Credit union auto loan rates can be lower than rates from a bank because the profit motivation isn't there. Credit unions can also offer more flexible terms and personalized services for their members who need an auto loan.
Factors Affecting Auto Loan Rates
There are several factors that determine the interest rate of your auto loan. These might include:
- Credit score
- Loan term
- Vehicle age and type
- Down payment
- Debt-to-income ratio
You can work to lower your debt-to-income ratio and raise your credit score before applying for a loan. You can pay off debts, such as credit cards and installment debt, beforehand. This can benefit both your credit score and debt-to-income ratio. Another way to lower the interest rate is to have a significant down payment for the vehicle.
Finding the Best Auto Loan Rates in Florida
Like anything else, you need to shop for the best credit union auto loan rates for you. There are many credit unions throughout Florida, including MIDFLORIDA Credit Union. You may consider applying for an auto loan from more than one lender to ensure the best rates and service. While the interest rate plays a role in the best loan, you also need to pay attention to any fees and the level of service you receive.
Tips for Securing the Best Auto Loan Rates
Before car shopping and loan hunting, you need to find out your credit score. You can work to improve it if it's low. Improvements can be made by paying down credit card debt or paying off delinquent accounts. You can leverage multiple loan offers against each other to get better terms. The credit union might be willing to lower the interest rate if you have better offers. It's also a good idea to get your auto loan pre-approved before you start shopping. It lets you know how much you can spend, and it can help you negotiate the price of the car.
MIDFLORIDA Credit Union Auto Loans
At MIDFLORIDA Credit Union, we want to provide you with a car loan that meets all of your needs. We offer competitive rates and minimal fees. Our team can provide you with flexible terms so you can set the amount to pay each month.
Select MIDFLORIDA Credit Union for Your Auto Loan
Now that you understand more about credit unions and their auto loan rates, it's time to find the right partner. With flexible payment options and competitive interest rates, MIDFLORIDA Credit Union wants the chance to work with you on getting your new wheels or refinancing a current car loan that has an exorbitant interest rate. Contact us today to get started.
