Originally Published By Automotive Avenues for DivineCaroline.com
Don’t let the recent credit crunch stop you from purchasing your next vehicle. A great option right now is to get your auto financing through a credit union. Credit unions are often open to making auto loans to their members and in most cases will handle any credit scenario. Not only that, they often times have better rates than the banks.
Yet many consumers are leery of joining a credit union, unsure of what being a member entails, and unwilling to pay steep membership fees. To clear up any misconceptions, let’s take a look at the history and structure of credit unions.
Credit unions are non-profit financial institutions that were initially formed in the early part of the twentieth century in support of specific companies or local/state municipalities like: United Airlines, State of Colorado, Qwest (Mountain Bell), and many more. In the beginning you had to work at the company, or in some cases be related to someone working at the company, to join. With the shifting of the general economy away from “employer for life” mentality and the sale, acquisition and merger of large corporations, credit unions have had to make the shift as well.
As a result, credit unions have had to come up with a way to stay alive and competitive. First order of business: find more members. To do this they have created easy ways for people to join. Some credit unions have opened membership to certain surrounding communities, while others have welcomed members who live or work in certain counties. In many cases membership fees to open an account are only a few dollars. These changes have been extremely positive for both the general public and the credit unions. Now more and more of the general public can enjoy the benefits of the credit unions.
The benefits of credit unions are numerous. First of all they are member owned, not publicly traded, so there is no influence from Wall Street. They are fiercely protective of their members, so you won’t get bombarded with “affiliate” advertising. They offer incredible rates from loans to CDs.
And in this economic market here is the best secret about credit unions: they don’t spend millions of dollars on gimmicks to lure in new customers; in fact they spend very little on marketing, considering that they are competing in the financial sector. Because of this, they are solid, dependable, and they have liquid assets that they are looking to loan out, in the way of low interest car loans. Currently most credit unions are offering at, or below market, interest rates on auto loans, and they are still qualifying members with all types of credit scenarios. There has never been a better time to join a credit union.
If you’re ready to learn more about the credit unions in your area, here are some steps to take:
- Contact your company’s HR department and see if your company is affiliated with a credit union
- Find the credit union league Web site for your state and get a list of the participating credit unions
- Go to each credit union’s Web site to identify membership eligibility and shop rates
Credit unions are a great option if you are in the market for an automotive loan. It is worth the effort to research unions in your area and compare interest rates and loan details. The result may be a highly competitive car loan and a long-term financial partner.
By Automotive Avenues for DivineCaroline.com. Used by permission.