UCU Auto Loan – the Smart Way to Buy a Car

For many of you, owning a car is a necessity - an essential mode of transportation needed to carry out everyday tasks. It is also the second greatest expense after housing. So when it comes time for you to buy a new or pre-owned car, getting the best possible deal on the price will likely be one of your top considerations.

Buying a car is not a simple process. You will probably spend countless hours poring over car listings and many weekends at dealerships test driving cars before you decide on the one that is right for you. Your ultimate goal is to buy a car that will serve your needs at a price that will fit your budget.

After you make your choice, the next step is to decide how to pay for it. If you do not have the savings to pay for the car in full, then your remaining option is to arrange for financing.

UCU Car Loan – a Better Financing Option

Financing the purchase of your car with a UCU Car Loan will give you the advantage of knowing the pre-approved amount of your loan and your loan repayment terms.

Just bring your UCU Loan pre-approval with you to the car dealership and you will be able to select a car that is in your price range. 

Knowing the top end of your budget may also put you in a position to negotiate a better price for your vehicle.

Dealer financing may be convenient - but it could end up costing you more

Financing the purchase of your car through a car dealership may be a one-stop shopping experience. But it may not always be the best choice. With dealer added fees and markups, you could end up spending more for your car in the end.

Dealer arranged financing is designed to make it easier for you to drive off the lot in your new car. But dealer financing is not a loan from the dealership - in most cases, it is a loan from a bank with the dealer adding extra fees.

If you chose dealer financing, the dealer will fill out your loan application and send it to multiple lenders to see which lender will approve your loan. This sounds convenient but it does have some drawbacks.

Disadvantages of Dealer Financing

• You won’t be able to see the lenders’ quotes and you won’t be able to see if you are getting the best possible interest rate on your car loan
• Car dealers make money by adding extra fees to your loan payment and by marking up the interest rate on your loan
• 0% dealer financing is available to people with excellent credit scores – those with lower credit scores may not qualify
• Your loan may be issued by a bank that is not located in your city or province – with no personal connection to you

UCU Car Loan Advantages

Lower Interest Rates - No Added Fees - No Markups

Applying for a UCU Car Loan means you are borrowing money directly from UCU, with no middleman, added fees or markups. 

UCU Loan Specialists do not work on commission, as car dealers do, and they will pass on the savings to you in the form of competitive interest rates. That means a lower overall cost for your car.

Pre-Approved Loan

UCU has made applying for a Car Loan quick and easy with no upfront application fees.

Just visit your local UCU Branch and provide some basic financial information, including proof of employment.  

A UCU Loan Specialist will then conduct a credit check to determine your credit score. A better credit score means lower interest payments on your UCU Car Loan.

With a pre-approved loan, you can buy a car that will serve your needs at a price that will fit your budget.

Custom Repayment Plan

UCU Car Loans come with affordable monthly payment options that will suit your budget.

You will have up to five years to repay your loan, with your choice of weekly, bi-weekly, semi-monthly or monthly payment schedules.

You can even set up an automated payment plan from your UCU Chequing Account for a more convenient repayment solution.

Personal Loan Insurance Premium Protection

You can purchase personal loan protection insurance for your UCU Car Loan. Life, disability and critical illness insurance can help protect you from an unforeseen event, by paying the outstanding balance of your loan in the event of illness or death, or by making your regular loan payments in the event of a disability. 

Conditions apply and the cost of the premiums will be added to your loan repayment schedule.

More information about UCU Car Loans can be found on the UCU website.

Visit your local UCU Branch to apply.