No matter how many cars you’ve purchased, visiting the dealership can always be a little intimidating. You want a deal, and like any business, they want to maximize profits. Thankfully, with financing knowledge, you can enter the dealership doors empowered to drive the sale on your terms.
Before you head to the dealership, read up on the pros and cons of dealer-arranged financing—and the benefits of working with a credit union like Rally.
Dealership Financing
When you’re already shopping at the dealership, it’s natural to wonder if you should go with dealer-arranged financing for a completely streamlined experience. Here’s when it benefits car buyers—and when to steer clear.
The Benefits
- Convenience: Financing through the dealership lets you shop for your car, test drive and set up your loan—same day, same place.
- Dealership specials: Dealerships often run promotions for specific models, offering lower interest rates, cashback offers and loyalty rewards.
- Financing options: Many dealerships partner with Rally Credit Union, so you can get the financial benefits of a Credit Union with the convenience of signing at the dealership.
Know Before You Go
- Those special promotions are typically only available to buyers with excellent credit in limited lending windows, like 36-month terms.
- Special promotions are only available for select, brand-new models. This won’t be an option if you’re buying used.
- If you choose dealer-arranged financing, ask what your rate is and understand other charges may be added.
The Takeaway
- If you’re interested in a special promotion for a specific new model, dealership financing may save you money. In most other cases, it’s best to explore your options.
Credit Union Financing
Even with over 140 million members in the United States, many consumers still don’t know the unique benefits of credit unions. Great auto loan rates are just one of the standout offerings from names like Rally Credit Union. Here are a few of the ways they often beat the dealership.
The Benefits
- Better rates: While dealership-arranged financing is used as a lever for profits, credit unions simply want to offer the best deal possible. That means consistently better rates without the dealership loopholes.
- Better planning: With pre-approval, you can see your options for rate and loan terms ahead of time—so you know exactly what your monthly budget and limits are.
- Better negotiating: When the loan is already covered through a credit union, you can focus on negotiating the exact price of the car.
- Better dealerships: There are many credit union-friendly dealerships in the Coastal Bend. Check out all of Rally Credit Union’s preferred dealer partners.
Know Before You Go
- Getting pre-approved gives you considerable leverage in the negotiation stage. It’s easy to apply online and pre-approvals are typically processed in minutes.
- You don’t already have to be a credit union member to apply for an auto loan. A Texas favorite like Rally Credit Union is a smart choice to get started.
The Takeaway
- It may take a little extra planning, but working with a credit union ahead of time can save most people hundreds or even thousands over the length of an auto loan.
Get in the Driver’s Seat
Still have questions? There’s a Rally Credit Union expert ready to help. As the #1 auto lender in South Texas, we have decades of providing drivers with the rates and terms that keep their finances moving. Stop by a branch or apply online today to get started.
