Photo: flickr lucianvenutian
As economic hardship continues to keep Americans struggling with monthly budgets, looking to affordable auto loans can mean the difference between staying in the green or going deeper into debt each month.A resource that borrowers are turning to more frequently are credit unions, like Pentagon Federal Credit Union, to keep them practical and savvy when financing a car.
Benefits of Credit Union Auto Loans
Buying a new or used car is a commitment that should not be taken lightly. Depending on the stage you’re in at the moment — whether you’re buying a car for the first time or simply want to take advantage of lower auto loan rates, you’ll have varying needs.
A common misconception is that dealership financing is the only route available for consumers, when in fact, credit unions are a practical and cost-effective approach to driving away in your dream car.
Pentagon Federal Credit Union is a great example of a credit union where you can find a number of smart auto loan options. They serve a range of needs that ensure you’re not paying extra for your vehicle unnecessarily.
New Auto Loans
Pentagon Federal Credit Union auto loans for new vehicles have flexible terms that compliment different monthly budgets and incomes, based on qualifying credit. Current rates for new auto loans are:
- 1.99% APR* up to 60 months
- 3.49% APR* for 61-72 months
Additionally, up to 100 per cent financing is available and applying for credit union auto loans is made convenient via Pentagon’s online application form. At times, borrowers can receive a decision instantly, so you can make the right decision about your auto loan without delay.
This expeditious process by Pentagon Federal Credit Union provides qualified borrowers with pre-approved auto drafts, so that when you’re negotiating for your new car, you can demonstrate to sellers that you’re a serious buyer. The credit union offers up to $70,000 in financing for new vehicles, so consumers have a wide range to work with, if needed.
Used Auto Loans
For those who are interested in remaining frugal with their car purchase by considering a used car, credit unions also have affordable rates on pre-owned cars. With used auto loans, members of Pentagon Federal Credit Union still benefit from low auto loan rates like 1.99% APR for up to a 60-month term, in addition to the existing savings just by buying used.
As with the process involved when applying for a new vehicle, Pentagon’s used auto loans can be requested via their online application for up to $70,000 in financing. Unlike other institutions, Pentagon Federal Credit Union has no restrictions on what make or model year borrowers finance for, and can even get pre-approved if they qualify.
Refinance Auto Loans
If you currently feel stuck with an inflated interest rate from an existing auto loan, a credit union can get you and your finances out of this rut. It’s never too late to save yourself hundreds of dollars with a 1.99% APR auto loan rate for 60 months or a 3.49% APR interest rate for refinance auto loans of 61-72 month terms.
Refinancing your auto loans through Pentagon Federal Credit Union can save money by lowering monthly payments and reducing the overall interest you’ll owe over the life of the loan. You can even refinance up to 100 per cent of the purchase price and receive an immediate decision on whether or not your qualify.
Saving Money on Auto Loans
Interest rates on auto loans vary from institution to institution, so keeping yourself aware of current rates and the offers available is key when financing a vehicle. Some Americans erroneously believe that undergoing pre-approvals or refinancing is too tedious a task, but with credit unions like Pentagon Federal Credit Union borrowers have a lot more to gain by taking a few minutes to do their homework.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.