The process of buying a new
or used car with the help of an auto loan is fairly simple if done under the
guidance of a professional with in-depth knowledge of the requirements and
procedure involved. Apart from being well-informed of your financial status such
as monthly net income, credit score, etc. you should be equipped with the right
kind of questions to ask before getting the auto loan.
Listed below are some
questions an auto loan buyer should ask before getting one:
- What Is The Interest Rate? The first question to ask is about the rate of interest for the auto loan. Interest rates for auto loans are expressed in the form of a percentage (Annual Percentage Rate). Owing a small amount of auto loans translates into a lower interest rate and vice versa. The aim of getting this information is to look for an auto loan that suits your financial requirements.
- What Is The Amount Of Down Payment Required? Next, ask about the requirement and amount of down payment for the auto loan. The amount of down payment is equivalent to a certain percentage of the vehicle’s selling price. A borrower can either put down the minimum amount of down payment required or more as per the amount he can afford to put down.
- What Would Be The Total Cost Of Loan For You? Get a clear picture of the total amount you have to pay for the vehicle by financing it. The total cost includes the down payment, loan principal and the interest part on the loan. It also includes loan processing fees and other fees if any.
- What Is The Duration Of The Financing Period? Auto loans usually last for 36 to 72 months which directly impacts the amount of interest to be paid. So, depending on your budget, ask for an auto loan that is affordable in terms of interest. Short-term loans cost less as far as interest is concerned whereas long-term loans are easier for those on a budget.
Greater Central Texas Federal Credit Union
offers affordable auto loans to its members. For more details on questions to
ask before buying auto loans, visit 3305 E. Elms Rd., Killeen, TX - 76542. You
can also call at (254) 690 – 2274.
Auto loans from credit unions are preferred by most people due to their affordability and streamlined qualification procedures. The process of getting an auto loan from a credit union is relatively convenient and personalized. Credit union auto loans offer flexibility as far as interest rates and loan options are concerned.
If you are considering getting an auto loan from a credit union, following are some points as to how these loans work:
- Members Are Shareholders: Once you are a member of a credit union, you are deemed to be a shareholder and not a customer. This is because credit unions are meant to serve their members (shareholders) with financial services at reasonable rates.
- Individualized Attention: Credit unions aim to make it convenient for members to avail financial services. Due to this, they offer individualized attention as far as meeting loan requirements is concerned. A credit union member, who is interested in an auto loan, can get information as per his unique requirements either online, by visiting the branch.
- Types Of Auto Loans: You can get a secured loan for new autos and used autos with variable APR rates and terms. You can get secured auto loans and Share Secured Loans. Unsecured auto loans are also available with variable APR rates.
- Interest Rates: Members of a credit union looking for auto loans are provided with a variety of options to compare and assess. In most cases, credit unions offer auto loans at affordable rates of interest as compared to other financial institutions.
- Other Services: In addition to auto loans, credit unions offer a variety of other services. These services include Savings Account, Payroll Deduction, ATM, Bill Pay, Wire Transfer, ACH Origination, MasterCard Gift Cards, MasterCard Cash Advance, Direct Deposit, Regular Share Savings Account, Share Certificates of Deposit, IRAs and Club Accounts.
Greater Central Texas Federal Credit Union offers auto loans to its members. Members can seek assistance from the loan officers to understand the working and requirements of auto loans. The credit union also educates its members on ways to improve their financial health. For further details on the working of auto loans, visit 3305 E. Elms Rd., Killeen, TX – 76542. You can also call at (254) 690 – 2274.