It’s certainly common for people to need a loan in order to purchase an expensive piece of equipment like a car. Your car is basically your second most valuable asset and your largest depended on device after your home, so it’s likely that you would have to get a loan for any major car purchase. While there are many factors that could contribute toward the cost of your auto loan, there is one factor that tells you exactly how much you will be paying each month; it is the interest rate.
In order to help people who may not be able to use a commercial bank or don’t want the individualized customer service that they typically offer, credit unions are often used by those looking for lower interest rates and higher flexibility on repayment.
Types of Auto Loans
There are two different types of auto loans. One is an “Amortized” loan that has a fixed monthly payment based on your trade-in value of the car in which you’re buying and the new amount you’ll be required to pay with each payment. On an amortized loan, your trade-in value will increase over time while the interest rate stays consistent. Secondly, there is also a Fixed rate loan which costs the same amount regardless of how much money you borrow.
What Are the Specific Benefits of an Auto Loan at vystar credit union?
The specific benefits of an auto loan at vystar credit union are the low interest rate. The average range for an auto loan is just 2.76% – 3.89% APR. Additionally, each vystar credit union location has a car dealership that can provide loans for customers who are interested in trading in their cars to have new ones financed by the car manufacturer.
Financing an Auto Loan
Vystar may offer low rates on auto loans, but the great deal doesn’t come without some strings attached. To qualify for a loan with Vystar, you’ll need quite a bit of information about your credit report and debt history. If anything in any of your outstanding credit projects is more than 90 days delinquent, then you might have to wait several weeks or pay up to $400 in order to have that removed from your report.
Alternative Financing Options for an Auto Purchase
Auto loan rates have been increasing recently which has made it difficult for many people to purchase an auto without a high interest rate. Vystar credit union emerged as a lender that is building strong relationships with the car manufacturers in an attempt to get lower interest rates for their borrowers and offer repayments terms. Auto borrowers can take advantage of these three different payment options: 24-month purchase, 36-month purchase, or 8-week installment.
vystar credit union is the only place I know of where people can get an auto loan with reasonable rates.