When it comes to purchasing a vehicle, there are several ways to secure financing. Great lending options can be available from either a Credit Union, Bank, or through the car dealership itself. At F&M Auto, we can work with any bank or credit union and provide them with the paperwork you need to get the best deal on the vehicle you want from our selection. Each lender has its own advantages and disadvantages. Let’s explore these common finance solutions so you can make an informed decision when the time is right.
Credit Union Auto Loan
Credit Unions are non-profit financial institutions that are owned by their members. One of the significant benefits of getting a credit union loan is the flexibility and personalized service they offer. Credit unions are known to have more lenient lending policies, which means it is easier to get approved for a loan, even if you have less-than-perfect credit. Additionally, credit unions offer more flexible loan terms, so you can customize your loan to fit your specific needs. F&M Auto has the ability to collaborate with any credit union. We can easily supply them with the necessary documents to help you secure the best offer on the vehicle of your choice from us.
Another significant advantage of financing your vehicle through a credit union is the lower interest rates offered compared to traditional banks. This means you'll end up paying less interest over the life of the loan. That can save you a notable amount of money!
Bank Lending
Banks are for-profit financial institutions that offer a range of financial services, which includes automotive loans. Banks are known to have stricter lending policies. This means that getting approved for a loan may be more challenging, especially if you have less-than-perfect credit. However, if you have good credit, you may receive an even lower interest rate than you would with a credit union! F&M Auto is able to partner with any bank. We can easily provide them with all the necessary paperwork required to ensure you receive the best deal on your desired vehicle from F&M Auto Sales.
One of the main advantages of choosing a bank for your loan is the extensive range of options. Banks offer a variety of loan products that you can choose from, including secured and unsecured loans. Additionally, banks tend to offer higher loan limits, meaning you can borrow a larger amount of money to purchase your vehicle of choice. Browse affordable, reliable used vehicles from our extensive inventory.
Dealer Finance
Dealer finance is a type of financing that is offered directly by independent and franchise car dealerships alike. Financing your vehicle at the dealership is the most convenient as everything is done all in one place. It can be in-house financing or through a quality relationship the dealership has developed over the years with various local and/or online lenders.
One significant advantage of a dealer car loan is how much easier it is for them to get you approved. How? Because car dealerships usually work with a network of lenders, and they can often find one that will approve your loan despite short time on job, lower income, bad credit, prior repos, collections, divorce - even bankruptcies! At F&M Auto Sales in Detroit, we’ve partnered with Capital One to get you Pre-Qualified without impacting your credit score! Once they’ve pre-qualified you, your real rate and real monthly payment will show on each qualifying car as you shop our website!
Additionally, dealerships may offer incentives such as zero percent financing or cashback offers, which can help you save money on your car purchase.
When it comes to buying a car, there is no one-size-fits-all solution. The financing option that is best for you depends on your individual needs and financial situation. A bank loan may be your best option if you have good credit and want a lower interest rate. If you have less-than-perfect credit or want more personalized service, credit union financing may be the right choice. But if you're looking for convenience or have bad credit, dealer finance may be the best way for you to go.
F&M Auto Sales has helped thousands of people get financed quickly and get driving the same day! We have solid relationships with a network of lenders, including Credit Unions and Banks, to help our customers secure the best financing options for their needs. Most importantly, any bank or credit union can be collaborated with. Come to our dealership to speak with our finance team and find the desired financing solution for you.
