Credit Unions and the Rise of Auto Lending
Need a new set of wheels? Before you apply for in-house financing at the dealership, head for your local credit union. Dealership financing tends to involve unfavorable interest rates and restrictive terms for borrowers. You’ll find that the interest rates at your local credit union are far more advantageous for your wallet. In fact, during the past few years, credit unions have demonstrated remarkable growth in auto loans .
Improving Economic Conditions
According to Forbes magazine, there has been a 30 percent increase in auto lending among credit unions in the U.S. since 2012. During the third quarter of 2014 alone, auto loans from credit unions totaled nearly $225 billion-a figure that includes both new and used autos. This was a significant increase from the third quarter of 2013, which had $193 billion in auto loans. Economists note that improving economic conditions have contributed to the rise of auto lending from credit unions. The unemployment rate has been declining, wages have been increasing, and gas prices have been steadily dropping. All of these factors have given consumers greater confidence in the economy in general and their personal finances in particular.
Competitive Lending from Credit Unions
Since the recession, many consumers have made greater efforts to become better informed about their financial decisions. Increasingly, consumers have turned to credit unions for favorable lending arrangements. Credit unions have a reputation for offering interest rates that are consistently lower than auto loans from a bank or financing through a dealership. Additionally, some credit unions offer auto discounts to their members, such as a discount for purchasing environmentally friendly hybrid vehicles.
When it’s time to shop around for your new or gently used vehicle, stop by GCS Credit Union first and ask about our auto loans in O’Fallon. Our credit union is proud to serve the Metro East community with competitive rates , flexible terms, and exceptional member service. Call (618) 797-7993 or visit our website to view our convenient list of GCS Indirect Auto Dealers, car buying tips, and incredible auto discounts!