Auto Loans 101

2/2/2018 |

Category: Lending Products

Auto Loans 101

So you've been researching your dream car, one that you can't wait to hit the road in. But have you thought about how you'll afford it? You'll most likely have to take out an auto loan, and Premier Source Credit Union is here to help you get on the road faster.

View our auto loan rates, and read on to learn more about our auto loans!

What's a Bank Auto Loan?

It's a loan that comes directly from a bank—or credit union—instead of financing your car through a dealership. You'll pay back the bank or credit union the amount you borrowed (plus interest).

Loan Factors

There are three factors that affect your monthly payment and total amount you pay on your loan: the loan amount, the annual percentage rate, and the loan term.

  • Loan Amount: It can be less than the value of the car if you're trading in your current car and/or making a down payment.
  • Annual Percentage Rate (APR): This is the interest rate you pay on your loan.
  • Loan Term: The amount of time you have to pay back the loan.

Why Get an Auto Loan from a Credit Union (or Bank)

Often loan rates are lower at credit unions, and you can know how much money you've been pre-approved for and what your car loan rates will be. You'll have all of the information you need before you go to the car lot to pick out your new ride. Additionally, you'll experience the same friendly service you receive while using other credit union products.

If you've been thinking about buying a new (or used) car, we recommend taking advantage of the auto sales that are happening in February. Look around at what kind of car you want, and then stop into Premier Source to apply for an auto loan!

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