There’s a Way to Love Your Ride and Your Loan
February 7, 2020
The road ahead is full of possibilities—and choices. If you’re in the market for a new car, you have many financing options. Large banks and car dealerships may offer enticing, flashy financing offers, but you’ll end up paying more in the long run.
At RCU, we’re focused on value, not profit, which lets us offer our Members lower rates and better products and services. Here are some ways a credit union can help you get the most out of financing a vehicle.
Better Savings
Zero percent financing sounds great, but is it too good to be true? Many auto dealers advertise 0% financing, but not every car buyer qualifies for it. This rate usually applies only to people with a very high credit score and little or no debt. Unless you fall into that category, you may pay a much higher rate.
If the dealer offers you the choice of 0% or a cash rebate, opting for the cash rebate and financing a low rate with your credit union will probably save you money. Consider this: with rates as low as 2.99% APR1 from RCU, you could save over $1,000 by financing with RCU, based on a $25,000 loan with a 60-month term, compared to the national average of 4.56%2.
If you’re already paying off another lender’s auto loan, check your loan’s rates. Rates may have improved since you took out the loan, or you may qualify for a better rate now.
Transparency and Trusted Service
Feeling confident in your car purchase is important, and that’s why you should feel free to ask questions through every step of the car-buying process. Don’t be afraid to counter an offer you feel is unfair, and make sure to point out any questionable charges you see on the dealer contract before you sign.
It’s also important to feel confident in your financing. A dealership may say they’ll shop around for the best rate, but their recommendation is likely driven by commission. Credit unions are connected to their community members and want you to get the best rate. When you apply for an auto loan, chances are your credit union won’t haggle and will work with you to finance a loan that works for both parties.
Comprehensive Offerings
Even if you’ve done it before, shopping for a car can be overwhelming. Credit unions can often help in the car-buying and financing process. For example, we offer Members access to RCU Auto Services, which helps buyers identify the just-right vehicle.
Some credit unions partner with an insurance company or have agents of their own, which offers continuity and peace of mind. RCU Insurance Services works with top-rated carriers to deliver quality, valuable insurance.
Because we work for you, it’s important to us to offer an auto loan that fits your needs and your budget. If you’re in the market for a new car, consider financing with us during our Auto Loan Rate Sale, happening now through March 31, 2020.
To learn more or begin an auto loan application, give us a call, stop by a branch, visit redwoodcu.org/auto, or let the dealership know you’d like to finance through Redwood Credit Union.
1Rate discount effective 2/1/20 through 3/31/20. Rates, terms, and special offers subject to change. Discounted refinance rates available for purchases and refinances of existing loans from another financial institution. Estimated payment example: For a 60-month term, pay $17.97 per $1,000 borrowed at 2.99% APR. Certain restrictions may apply. 2National average rate taken from bankrate.com 1/30/20 and assumes excellent credit. 3RCU Auto Services (RCUAS) is a wholly owned subsidiary of RCU. 4Insurance products are not deposits of Redwood Credit Union (RCU) and are not protected by NCUA. They are not an obligation of or guaranteed by RCU and may be subject to risk. Any insurance required as a condition of an extension of credit by RCU need not be purchased from RCUIS and may be purchased from an agent or an insurance company of the Member’s choice. RCU Insurance Services (RCUIS) is a wholly owned subsidiary of RCU. Business conducted with RCUIS is separate and distinct from any business conducted with RCU. License no. 0D91054. NPN 7612227.
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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