Autodecide

Car Loan Deals at Credit Unions

November 26, 2006 on 4:45 am | In automobile purchase, decision analysis | No Comments

Before you go to the dealership to buy a car, you should take the advice of consumer advocate Clark Howard::
Clark has talked for several years about the tremendous advantage of getting pre-approved for your car loan from a credit union. They offer deals that are substantially better than what you’ll get from a bank.
To join a credit union, you have to be eligible and be in their field of membership. Each credit union’s field of membership is different. It can be based on where you live, where you work or what organization you are a member of. There’s a little known fact that there are several credit unions you can join via a membership into an organization open to everyone. There’s typically a small membership fee into these organization, but you only have to pay this one time. Once you’re a credit union member, you’re a member for life. You can join these organizations and these credit unions by mail and in many cases online. So you don’t have to live close to one. The Bank Deals blog has a list of several credit unions open to everyone.

Car Loan Deals

As Clark Howard mentioned, you’ll often find great deals at credit unions for car loans. One credit union in particular that has consistently offered great loan deals is Pentagon Federal Credit Union. This is one of those credit unions anyone can join. Currently, they’re offering auto loans with rates as low as 5.74% APR for new cars with terms from 36 to 72 months. For used cars the rates are as low as 6.04% APR for terms from 36 months to 60 months.
An even better deal is currently at Agriculture Federal Credit Union which is another credit union open to all. They are now having an auto loan special with rates as low as 4.99% APR for new cars, trucks and vans with terms between 24 months and 60 months. For used vehicles, the rates are as low as 5.49% APR for terms between 24 and 60 months. These are fixed rates. You can even get a $50 gas card.
The above deals are much better than what’s listed at Bankrate.com.