Should I finance through my credit union if they promise to beat the dealer's interest rate by 1.99%?

I was approved at my credit union for a 60-month car loan at 7% due to my lackluster credit history. However, I told them I might finance through the dealer if they can beat the credit union's rate. The rep immediately responded back that the credit union guarantees it will beat any rate by 1.99%. Should I finance through my credit union with this verbal promise?

Answer
“That sounds like quite a deal from your credit union.
Beating any car loan by 1.99% is amazing, so you should certainly take that deal.
While you will have to fill out a credit application with the dealer, the savings in interest should make the credit hit worthwhile.
See how low you can get the dealer to go with your bank’s preapproval letter and you might walk away with the deal of the century.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 02, 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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