If you’re like most people, shopping for a new car is a mixed blessing. There’s the excitement of test-driving new wheels and anticipating taking a more reliable, up-to-date vehicle on the road. The paperwork, however? A big stack of hassle, especially when it comes to setting up that loan, not to mention the stress of figuring out how to add this new purchase to your budget.
You’ve finally landed on your dream car, and now it’s time to take care of business before driving off into the sunset. Filling out your loan paperwork at the dealership seems like an easy, natural extension of the process. The last thing you want to do is add another errand to your list by shopping for a loan first, and after all, doesn’t the dealer already know all the pertinent information? Sign and get on your way.
Many people think they are saving a lot of time and hassle by folding their loan purchase into their car purchase. This common misconception can rack up significant costs over the life of the loan, as dealers prioritize certain financial institutions with potentially higher rates in order to receive higher “dealer reserve” commissions. In-house financing offered at “buy here, pay here” dealerships can require even higher costs and fees.
A pre-approval from a credit union may not only offer better rates for auto loans, but the personal attention and local community connection many dealership finance departments lack. A credit union’s priority is to serve you by looking out for your best financial interests. A dealership or bank’s priority? Profit, of course.
Also, when you arrive with your loan in hand, you hold the power! Having your approved loan amount settled and in writing will prevent the salesperson from trying to sell you out of range so you can focus on the best car for the price.
Millstream Area Credit Union makes it simple and straightforward to get a car loan that works for you:
Let Millstream Area Credit Union set you on a path to success with your next auto purchase.