Should Your Auto Loan Come from the Dealership or Credit Union?

You may have noticed some television commercials lately from automobile manufacturers offering low auto loan rates. It’s tempting right?


Those rates are even lower than ours, and we continue to have some of the lowest auto loan rates in town. So what’s the catch?


Here are some details to look for in the fine print before you even start shopping for a vehicle.


Unaffordable Loan Terms

Most of of our research shows these low rates from dealerships available on loans for 36 months. The price of vehicles has risen quite a bit over the past year or so, and sadly, the average consumer cannot afford the monthly payment for a 36-month loan. Auto manufacturers use this promotional rate to get people through the door, but most either won’t qualify for it or won’t be able to afford the monthly payment.


New vehicles only

Most if not all of these offers are good on new vehicles only. This is another affordability challenge for many consumers – especially since rates on used vehicles tend to be higher than rates on new vehicles. We encourage you to check our auto loan rates on used vehicles and compare them to the dealerships where you are shopping.


We can prequalify you

If you already know what vehicle you want, apply on our website, and we will prequalify your loan up to a certain amount. That gives you more negotiating power at a dealership and also limits the add-ons they try to sell you. Not to mention, we offer many of those same add-ons, like extended warranty, for a fraction of the dealer’s cost.


When you’re making a large purchase like a vehicle, you might want to stick with a lender you can trust – one that treats you like family. At Kelly Community, we’ve got your back whether you are buying new or used.


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