New Contributor
darrell
Posts: 55
Registered: ‎12-09-2007
Dealership or Credit Union Loan

Hello all,

 

I was approved for 2.99% interest from the dealership and my local credit union. I have a savings account with my credit union.

 

1. Is it better to get loan from the credit union or the dealership finance companies?

 

2. If I choose the credit union for the loan and get into trouble making the payments, will they automatically take payments from the savings account?

 

Thanks,

Established Member
sidestep22
Posts: 17
Registered: ‎02-25-2011
Re: Dealership or Credit Union Loan

Darrell,

 

Is the dealership offering cash back (rebates) in lieu of the 2.99% rate?  If so, it might make more sense to go the CU route and grab the rebates (if any) offered for not using the dealership's financing. 

 

Or, if you are like me, looking for a Hyundai Sonata, the only way to get a rebate is to finance with them (Hyundai Finance; $400.00 for recent graduate).  So consider the rebates if there are any and what does it take to qualify for them. 

 

Can't speak as to what the CU would do in you don't make payments, but be careful.. if you feel uneasy about being able to pay the money back you might need to rethink the purchase.  Many people on this site are rebuilding from bad luck or poor decisions made, if you can avoid getting into a bad situation, that it would be the best gift you can give yourself!

Super Contributor
marty56
Posts: 5,696
Registered: ‎10-06-2007
Re: Dealership or Credit Union Loan

Normally I would say a CU but Toyota gave DW the same rate and some extras when they found out she was pre-approved by our CU.  I would try the CU first and see if you can use that to bargin with the dealer.

 

IMHO a CU is less forgiving on not making payments.

11/28/2014 FICO: EQ: 796 EX:788 TU:803