Top Five Credit Unions for Auto Loans

Overview

• Video Structure
  • Part 1: How to purchase a car properly
  • Part 2: Top five credit unions for auto loans
  • Part 3: How to get rid of negative equity in a car loan

Part 1: How to Purchase a Car Properly

• Rule 1: Never let a dealership run your credit unless leasing with top-tier credit.
• Interest Rates First: Shop for interest rates before looking for a car.
• Pre-Approval: Get pre-approved for an auto loan without a hard inquiry initially.
• Negotiation Tips:
  • Don’t reveal your pre-approval to the dealership.
  • Negotiate the out-the-door price without unnecessary fees.
  • Walk away if terms are unfavorable; dealerships need sales.
• New vs. Used Cars: Avoid new car purchases unless leasing (to avoid depreciation).

Part 2: Top Five Credit Unions for Auto Loans

5. NASA Federal Credit Union

• APR: 5.49% for 36 to 84 months.
• Benefits: No impact on credit score to check rates.
• Relationship Building: Establish accounts and direct deposit to improve loan terms.

4. Alliant Federal Credit Union

• APR: 5.19% with potential reduction to 4.69% via car buying program.
• Terms: Up to 84 months.
• Extras: Offers extended warranties and GAP coverage.

3. Langley Federal Credit Union

• APR: 4.49% with terms up to 75 months.
• Unique Feature: Free GAP insurance with purchase.

2. Pentagon Federal Credit Union

• Funding: Finances up to 125% of the loan-to-value rate.
• Loan Size: Up to $150,000.
• Pre-Qualification: Available before formal application.
• Car Buying Service: Offers discounts on multiple car brands.

1. Navy Federal Credit Union

• APR: 4.09% for new vehicles, 4.99% for used vehicles.
• Loan Terms: Up to 96 months.
• Membership: Restricted but beneficial.

Part 3: Getting Rid of Negative Equity

• Leasing as a Solution:
  • Leasing is a way to manage negative equity.
  • Roll negative equity into the lease with down payment.
  • End lease without debt in 24-36 months.
• Examples: Lease options from Honda and Toyota show potential savings.

Additional Tips

• Car Financing Risks: Avoid dealership financing to prevent hidden interest rate hikes.
• Investment Reality: Cars are not financial investments; focus on cost-effective leasing.
• Leasing Benefits: Lower monthly payments and flexibility with newer models.

Conclusion

• Leasing offers a pathway to avoid negative equity.
• Top credit unions provide competitive rates and special programs.
• Wise financial decision-making involves thorough research and strategic planning in auto purchases.