Get A Better Car Loan At Your Credit Union

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A credit union is a nonprofit organization that is owned by its members who are actually its customers. When you are a member, you own a small share of a financial institution. In fact, many credit unions return a share of their profits to customers in dividends. The aim of creditunions is to please its customers and to provide quality service.

Although creditunions are nonprofit organizations, they are still financial institutions. They place great value on providing excellent service. Since they are nonprofit organizations, they are exempt from the taxes assessed to banks. Consequently, they are able to offer higher interests rates for deposits and lower interests on loans, which is a benefit to their customers.

Credit unions exemplify the democratic process. In addition to the hired personnel who handle the daily business and customer relations, each credit union has a board of directors. These people are elected to make decisions about how the organization is managed. Since the volunteers are elected they tend to concentrate on serving customer needs rather than focusing on making money.

Credit unions get money from their customers and lend that money out to other customers. Generally, they offer the same products and services as banks. These include deposit accounts, home mortgage loans and auto loans. In fact, you can get a better car loan from a credit union because it is a small organization owned and operated collectively by its members.

Even though most creditsunions are much smaller than the typical bank, they are able to easily compete with big banks because credit unions are customer focused. They place value on the service they provide, not only the profit margin. As a result, you will be able to get much better interest rates on both your deposits and loans. Although credit unions may not be able to offer the range of services banks may offer, they compensate for this by providing personalized service by staff who are often friendlier and better educated to suit your specific needs.

The biggest reason to choose a credit union for your auto loan is the lower interest rates. They generally offer interest rates much lower than the rates on bank auto loans. According to one source, the current national average for a 48 month bank auto loan rates is 7.02%. However, the average for a 48 month credit union loan is 5.52%. A difference of 1.5% may not seem like a lot, but over the life of the loan it offers customers a substantial saving.

On a $20,000 loan the monthly payments financed by a bank would cost approximately $513.00 a month. The same loan from a credit union would cost about $435.00 a month. By using the lower cost approach to finance your auto loan, you'll will save approximately $80 dollars a month and almost $3800 over the course of the loan, a tremendous savings.

Article Source: http://depositarticles.com/

Enjoy the convenience of online banking with ICCU - the Illinois Community Credit Union - Our goal is to return profits to our members by offering more service with lower rates on things such as Dekalb Mortgages and Sycamore Auto Loans - 815-895-4541 - www.ilcomcu.org

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