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.

There are a handful of ways to get a new-to-you vehicle. Some people choose to pay cash, others will lease a car, and specific dealers allow buyers to charge on a credit card. Each way of getting yourself in a vehicle has its pros and cons, but the best option by far is financing. F&M Auto Sales is connected with over 30 lenders to ensure everyone gets 100% fast and easy auto financing to fit their needs. We work with everyone from Self-Employment, Fixed Income, Repos, Medical Bills, etc. F&M Auto Sales is proud to help people in all credit situations. 

Paying Cash

Buying a vehicle with your own money has its benefits. You don’t have to worry about any monthly payments. There’s no loan, so you won’t have to pay interest and won’t add to any existing debt you might have. With that being said, vehicles are a big purchase. It’s not a good idea to deplete your savings that you need for current expenses or emergency use. Financing a car can be a great way to start or re-establish your credit history. If you pay with cash, you can’t boost your credit - but a loan you properly manage will.

If you're waiting and saving up cash because you think less-than-perfect credit won't qualify you for a loan, let us assure you that financing is still an option at F&M Auto Sales. Many dealerships work with only one or two lenders. We have more lenders than most dealerships in the area, which means that we offer more financing options for our customers. Go to our Auto Loan Calculator to start calculating what your monthly payments could be.

Leasing

Leasing can seem like an excellent option for some. You can get a newer car and have a fixed monthly payment. Many people forget leases can include a host of fees and penalties. You are often constricted to a limited number of miles you can put on the vehicle. You also are usually required to have full coverage insurance. This easily can lead to a higher ultimate cost - especially if you keep the vehicle after the lease is up - than if you were to buy the car in the first place. 

Credit Card

A third option for purchasing a new-to-you car, truck or SUV some may consider is using a charge card. You can find some dealers that allow buyers to put the down payment or the entire cost of the vehicle on credit cards. While this method may have some upsides, such as minor minimum monthly payment and rewards like cash back or points, the downsides are highly significant. Credit card interest rates tend to be very high compared to car financing rates. This difference in interest will significantly increase the total you will end up paying for the vehicle.

F&M Auto Sales works with several top-of-the-line prime credit lenders in Detroit. We will even directly deal with your lender if you’ve gotten pre-approved by your bank or credit union, for example. Qualified buyers with decent credit can enjoy competitive rates as low as 2.9%. That’s right there with new car dealers, but at F&M Auto you won’t see a new car mark-up on the sticker price! 

There’s no reason financing should make you anxious. Don’t regret paying cash, leasing, or using a credit car. F&M Auto Sales is here to help you get easily financed and driving today. You won’t be overwhelmed with large payments - we work with your situation so everything is reasonable and affordable. Check out our inventory and apply online hassle-free.