Purchasing a car could be a significant investment and commitment, so it is important to ensure you partner with the right financial institution when you take out a car loan. Credit unions are great options for competitive rates, minimal fees, personalized service, and fast approval. However, it is important to understand how to apply for an auto loan with a credit union to help make the application process feel like a breeze.
Camino Federal Credit Union has been serving the Montebello community since 1941 with financial products tailored to each member’s situation and sincere, attentive guidance. Learn how to secure a car loan in our blog.
How to Apply for an Auto Loan with Camino Federal Credit Union
Applying for a car loan with Camino Federal Credit Union is fairly straightforward, but there are still several parts of this process to be aware of. From navigating the application process to how long the process takes, here’s what you should know about how to apply for an auto loan with a credit union.
What’s the Difference Between Banks and Credit Unions?
Before buying a car and figuring out how to apply for an auto loan with a credit union, you may want to understand the difference between banks and credit unions.
Banks and credit unions are both financial institutions you can use to manage your daily finances, take out loans, secure credit cards, and more. Credit unions tend to be smaller, enabling them to provide a more personal level of service. Banks also almost always have higher fees than credit unions.
Generally, the biggest difference between banks is that banks are for-profit institutions, while credit unions are not-for-profit, which enables credit unions to offer lower interest rates on loans. Also, banks generally have higher interest rates.
When considering financing a new vehicle, personalized service and low-interest rates are often the most significant benefits of applying for a loan through a credit union.
What Kind of Auto Loans Can You Apply for at Camino Federal Credit Union?
Credit unions usually offer a wide array of auto loan options for you to choose from. At Camino, the auto loans we offer include:
- Nearly New Auto Refinancing
- New & Used Auto Loans
- First-Time Auto Loan Programs
- Second Chance Auto Loan Programs
- Lease Buyout
- Recreational Vehicle Loans
- Motorcycle Loans
With so many options available, it can be difficult to determine which loan is right for you and your financial situation. Luckily, a member advisor can help you decide what financing option is right for you.
The Application Process for Obtaining an Auto Loan
You can apply online or in person. Regardless of how you apply, you need several items to be approved for financing and to buy a car.
First, you must find a credit union you want to work with. When applying for a loan, you must provide several documents, such as proof of insurance, income, and employment, and you should anticipate meeting credit requirements.
If you are approved, the credit union will inform you of how much you are eligible to borrow, what the interest rate will be, the terms of the loan, and any other relevant information. Should you decide to proceed, you will sign the loan agreement to finalize it.
If you have a poor credit score, your institution may require you to include a co-signer or pay a larger down payment. Still, if you are in a position where you have a poor credit score, we advise taking measures to improve it before applying.
The Benefits of Credit Union Auto Loans
There are several benefits for those wondering how to apply for an auto loan with a credit union. Firstly, when you partner with a credit union, members are not the same as customers. As a credit union member, you are a part-owner and shareholder.
As a result, credit unions focus on providing personalized, one-on-one attention to help you meet your financial goals and find the best option for your budget.
This personalized attention is especially beneficial when you are applying for financing because a credit union will take the time to understand your unique situation and what financing option makes the most sense for you.
Credit unions could offer competitive interest rates, flexible terms, lower fees, and a lower loan minimum. You will also be working with someone who is a part of your community and gets fast, local approval.
Tips for Receiving the Best Auto Loan Deal
A great strategy for securing a good auto value is getting pre-approval before you go to the dealership.
Pre-approval gives you more negotiating power because you aren’t seeking a loan with the dealership. When you apply for pre-approval, this entails a soft pull on your credit, which does not impact your credit score. Also, consider how you want to apply.
Applying online gives you the convenience of applying from anywhere, applying in person gives you the chance to work with an experienced Member Advisor.
How Long Does it Take to Get Approved for a Car Loan from a Credit Union?
Getting approved for auto loans from a credit union in Montebello can take anywhere from a few minutes to a few weeks, though when you work with a credit union like Camino, you enjoy fast local decision-making to streamline the application process while maintaining competitive rates.
Will a Credit Union Refinance an Auto Loan?
Generally, refinancing your auto loan is an option with a credit union. If you can get approved for an auto loan with a credit union, you can use those funds to pay down your old loan.
Do You Need an Auto Loan? Apply Today!
So, now you know how to apply for an auto loan with a credit union. If you are preparing to buy a car, the financial institution you decide to partner with is an important step in applying for an auto loan. Let Camino help determine a great auto loan for your circumstances. Our passion is helping our members build a bright financial future with smart financial products.
We provide competitive auto loan rates and attentive service throughout the entire process. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit our Auto Loans page to apply and get more information.