Do credit unions have the best car loan rates?

I've been on the ropes about financing a car, but my friend said credit unions can give you super cheap rates. Is this true?

Answer
Your friend might just be right! Credit unions are definitely one of your best bets when you want to get a great rate on a car loan, as long as you have good credit and a steady income.
Credit unions are not-for-profit organizations, so they don’t have to answer to shareholders or increase the bottom line, unlike banks or other lenders. As a result, they can offer better rates and pass the savings onto their members.
There are several reasons why getting a loan from a credit union might be preferable to getting a loan from a bank or dealership. These include:
  • Greater likelihood of getting approved for the loan
  • Lower interest rates
  • Lower minimum loan amount
But before you go to a credit union to get a car loan, you must meet their criteria for membership. This could include:
  • Working for a certain employer
  • Living in a certain area
  • Being a member of a certain group, union, church, or ethnicity
If you qualify for the loan, don’t forget that you will also need to budget for car insurance. Lenders require full coverage, so make sure to shop around with the Jerry app. Compare quotes in just minutes from over 45 reputable carriers.
Eric Schad
Answered on Nov 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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