Questions about Auto Loans? We Can Steer You in the Right Direction.
February 18, 2020
Cars come in many makes, models and colors, and options for auto loans are plentiful. If you have questions about loan terms, credit scores, or preapproval, we’re here to help! Follow these tips to avoid speed bumps along the way.
- Should I Finance Through the Dealer or My Credit Union?
Dealers do the paperwork for you and may offer special financing on some models. And buyers with little credit history or lower credit scores will often find dealerships more amenable to extending credit. But the choices may be fewer and the terms less favorable. By financing your auto loan through RCU during our Auto Loan Rate Sale (2/1-3/31), you can take advantage of rates as low as 2.99% APR. - Know Your Credit History
You may request a free credit report every 12 months from each of the three credit reporting agencies. It’s good to know your score, since it affects your ability to get a car loan. Reviewing your reports can also offer an early warning of identity theft. If you have a loan with RCU, you can access your credit score through online banking and our mobile app. - Ask About Direct Lending and Preferred Dealer Programs
To make the process easier for you, RCU partners with auto dealerships to offer direct lending programs. That means you can complete our application at the dealership. We regularly evaluate our preferred dealers, so you can be assured you’re doing business with a reputable car seller. - Should I Get Preapproved Before Visiting the Dealership?
Preapproval has its advantages. You’ll have a realistic picture of what you can afford, which helps you research options within your means. That may improve your ability to negotiate and save time at the dealership, so you get the best deal in a reasonable amount of time. - How Much Should I Spend?
Always the big question. We’re fans of the 20/4/10 rule: Make a down payment of at least 20 percent, finance for no more than four years, and keep total monthly expenses—including principal, interest, and insurance—to no more than 10 percent of your monthly gross income. It’s easy to get caught up in the car-buying experience. Set the emotions aside and be practical to avoid overextending yourself.
Buying a car is a big decision that may feel intimidating or confusing. By taking the time to look at resources and options, you’ll feel much more confident in your purchase.
Check out our Financial Wellness Center to learn more.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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