Credit union or my current auto finance company?

Question

I want to buy a newer car next year, but my credit is not the best. I''m currently rebuilding my credit, and my credit score should be between 620-650 when it's time for me to buy a car. I'm current on the auto loan i have now and i have been on time for a year. However i was late numerous times before then, due to a job loss. I also have a credit card through the same company thats financing my car and i have never been late with the credit card payments. Matter of fact i have a balance of zero on my credit card. I'm also a member of a credit union, i get my work checks directly deposited into my credit union account. My car will be paid off in 8/2008, but i plan on paying it off earlier when i get my income tax check in 01/2008. I like the current auto finance company i'm with now, because they gave me a fair rate, eventhough my credit was'nt the best. Should i try to get my next auto loan threw them, or should i try to get it threw my credit union?

Answer 1

Auto finance is what I do for a living and I would check with your credit union first.

Credit unions normally have better rates then auto lenders and like the previous poster said, you can set your payment up so that it's taken out of your account and never be late.

Just make sure that they report to all three credit bureaus.

Answer 2

Check out your credit union. The interest is probably cheaper. And you can set it up for automtic payment out of your direct deposit every week. That way you won't have to worry about any more late payments.

But you should seriously consider, driving that car without a car payment for a while. Put the car payment into a savings account. That way you'll have enough to pay cash or at least a nice downpayment.

Answer 3

My very first question back to you is why do you want a car payment at all???? I always advise to pay cash for cars, but that's not what you asked. So...I think though your credit union is best. You might get a better rate with them since you already bank there, my sister who loves to make car payments, goes thrugh her credit union and has had great success with them, cheaper rates, and discounts for ontime payments, etc. I think the people who sell and finance cars have a hidden agenda (personal opinion). I suggest borrowing the money from your credit union, ask for breaks if you do direct payments from your account since you had a hard time with previous payments. And if the dealer has a better rate, thake that to your credit union, see if they can match rates!! Never hurts to shop around!!

Answer 4

there is not any such element. in the experience that your credit is undesirable, no best lender is going to private loan you cash. you have verified an lack of ability to handle your funds, and you will pay dearly for the privilege of borrowing money. it fairly is merely the way it works. extra, you desire to purchase with $0 down. you will have no fairness in this motor vehicle for various years, and it could be complicated, if no longer impossible to sell it or commerce it earlier it is paid off.