Top Credit Unions for Auto Loans

These are the top five credit unions for auto loans. On today's video, we're going to cover a really big topic on the best five credit unions for auto loans, but we're not just going to stop there because there are going to be three very important parts of this video that you do not want to miss. Part one, I'm going to teach you how to purchase a car properly. Part two, we're going to go over the top five credit unions that you can look at in case you're in the market to purchase a car. And part three, I'm going to talk about how to get rid of negative equity. So if you purchase the car and you actually owe more than what the car is worth, then you're what we call upside down and alone and you have negative equity. On today's episode, I'm going to cover this one at the very end of this video on how to get rid of that negative equity permanently. So let's jump into this video because we got a lot of ground to cover. Rule number one, never ever let a dealership run your credit unless, unless you're doing a lease and you have top tier credit. I'll be honest with you. There are actually some manufacturers out there that will give you a decent lease option If you have anywhere from a 600 to a 680 it is totally possible some of these actual Manufacturers are getting really desperate right now And they're lowering their requirements to get an auto loan because guess what car manufacturers are not selling cars But we want to shop the car rate first the interest rate is what's going to determine your payment and exactly how much you're willing to pay. So we want to shop the rate first and then the car second. because there are hundreds, possibly thousands of lenders out there that will actually see if you are pre-qualified for an auto loan with them before you even get a hard inquiry. So don't play this like an amateur and walk into the dealership and then say, yeah, I'm going to go ahead and let them run my credit. Again, we don't want to do that unless we're doing a lease. And honestly, if you're going to do a lease, you can go directly through the actual website of the car manufacturer and do the whole process with them. and not even have to deal with the dealership. Simply open up Google and do an incognito browser or a private browser because you don't want it to know where you're at and that it's tracking you so it'll give you all of the best options for any pre-approved auto loans. So you're literally just gonna type in pre-approved auto loans and you're gonna get a list of all of the actual lenders that will pre-approve you with no hard inquiry. Now usually they'll get you pre-approved and then when you decide to move forward, there will be a hard inquiry. Just be aware of that. This makes sense because if you're not, not pre-approved then there's no need to move forward but if you are pre-approved then guess what that means you can move forward and there's going to be a hard inquiry but you know now that you have a higher chance of actually being approved and they're going to tell you what your interest rate is going to be and how much they'll actually let you borrow to purchase a car once you get your pre-approval and the bank approves you they say hey this is going to be your interest rate this is going to be your actual amount that we're going to let you borrow then now you start to shop for the car and you never ever tell the dealership that you are pre-approved you negotiate the out-of-door price. Make sure there's no bunch of junk fees on there that you're not actually comfortable with. If there's something on there you don't like and they don't wanna remove it, walk away from the deal. Because remember, dealerships are not selling cars right now. They need every sale that they can get. They don't wanna work with you, walk away. And what I just taught you, you can apply it to used and new cars. And I'm gonna tell you right now, you should never purchase a new car Because the moment you drive it off the lot, you're going to lose 25% of the value of that car. And it's just not worth it, honestly. Unless, okay, here we go. Unless it's a lease. Because you can walk away from that deal, honestly, in 24 months, 36 months, or 48 months. And you're scot-free. You don't owe anything else. And you can get yourself into a newer car if you want to. That's the only time you should ever purchase a new car is with a lease. Now let's move on to part two, which is the best credit unions for auto loans. Coming in at number five is NASA Federal Credit Union. Anyone can join this credit union. It's one of my favorites. Now NASA Federal Credit Union is coming in with a low APR of 5.49% with the terms of 36 months all the way up to 84 months. That's an absolutely long term. But remember, The longer the term, the higher the interest rate is going to be because it is deemed a high risk loan. And NASA Federal Credit Union does absolutely offer refinancing. If you've got a bad term on your loan and you want to get out of the interest rate, you can potentially refinance it with this credit union. And the reason why it made the list, because guess what? There's no impact to your credit score to check your rate and see if you are pre-approved with NASA Federal Credit Union. That's the best part about it. If you're trying to go with a credit union, whether you have good credit or bad credit, you want to establish a relationship first to get the best interest rate and the highest amount possible. Open up a checking, a savings, and do a direct deposit. You want 75% of your money going into your new relationship with that credit union. You also want to do a secured loan with a term of a minimum of 24 months. Do all of this for a minimum of 91 days. If you can push it to six months, all the way up to a year, kind of pre-plan that you're actually gonna purchase a car. This is going to help establish your relationship and get you approved with that credit union. And if you're someone that has top tier credit that's above a 725, you will most likely get approved if you just go through their process, but understand, you'll get the better rate. if you build the relationship and you'll get a larger amount for that auto loan because you've already established that relationship and they trust you. Coming in at number four is Alliant Federal Credit Union. Now, Alliant is going to be coming in at an interest rate of 5.19% APR on a new auto loan or a used one. Now, remember, of course, the longer the term, the higher the interest rate. I'm going to keep saying that so you really understand it because a lot of people don't get that and they're always just focused on the actual car payment. But Alliance has what's called a car buying program. If you go through their car, their car buying program, you can potentially lower your interest rate all the way down to 4.69%. If you go through their program to purchase a new or used car, and also be aware, all of these credit unions offer extended warranties and gap coverage. That's huge. And that's really important that you get gap coverage. If you purchase a new car, because if you purchase that new car, and then you wreck it, the actual insurance company will only cover what the car is worth. And if you actually owe more than what the car is worth, then you're stuck holding the bill, and we don't want any of that nonsense. If you go through their actual car buying program with Alliant, you can build the car exactly how you want it, and then just actually go through the whole financing process with them. And then you just go pick it up at the dealership whenever you're ready, and it's done. And Alliant does offer auto term loans all the way up to 84 months. Coming in at number three is Langley Federal Credit Union. Anyone can join it, which is great, and this is the reason why I love it. They're going to be coming in at an interest rate of 4.49% with auto loan terms, all the way up to 75 months, if I can say that properly. Now, what I found really interesting about Langley was they offer free auto protection. So get GAP insurance for free with Langley when you purchase your next vehicle with us. Guaranteed asset protection is what GAP stands for. covers the difference between what your car is worth and what you owe if it gets totaled or stolen so that's a huge deal right there you're gonna get that for 100 free if you go through laneley federal credit union and again anyone can join and coming in at number two is going to be pentagon federal credit union now pentagon federal credit union will actually finance up to 125 of the loan to value rate of the car meaning if you have some negative equity that you have to roll over you can actually do that with Navy, I'm sorry, with Pentagon Federal Credit Union up to 125% of the value. That's pretty crazy. And they also have the pre-qualified tool that is available to see if you qualify for an auto loan before you even actually go through the process. And they do also offer a car buying service. And PenFed is one of the very few credit unions that will do an auto loan all the way up to $150,000. and they do start off with terms from 36 months all the way up to 84 months with penfed I want to give a special shout out to all my beasters out there that are working hard to fix their credit using dispute beast the most advanced AI credit repair software ever created and specifically to Wesley whose Wesley's credit score went up over 226 points after just two rounds with dispute beast and also Marcus Marcus's credit score went up 337 points after just two rounds with dispute beast and let's not forget Richard Richard's credit score went up 446 points after just one round with Dispute Beast. Dispute Beast is going to be pinned at the very top of the comments and in the video description for anybody that needs to fix their credit. Last part's the most important. Now be aware if you use the car buying service through PenFed, it is powered by Trucar and they do have exclusive offers for their members. So let's just go over all the major brands here. So you're looking at Mercedes-Benz save up to $5,500 on select Mercedes-Benz vehicle. Alfa Romeo save up to $1,000 on select Alfa Romeos. Chrysler save up to $1,000 on Chryslers. Dodge, save up to $1,000 on Dodge. Fiat, save up to $1,000. Jeep, save up to $1,000 also. And Ram, you're gonna save up to $1,000 also. So all of these are exclusive offers specifically just with PenFed. Now coming in at number one, you are looking at Navy Federal Credit Union. Yes, not anyone can join this credit union, but if you can get in, it is totally worth it. I've been through the car buying process. Actually, the motorcycle buying process, it was very easy. I actually got my Harley Davidson financed through Navy Federal. I went on, actually, I called them and told them I was in the market to purchase a motorcycle. I was pre-approved in literally like less than five minutes. And they told me, would you like to proceed so we can see exactly what your rate's going to be and what the amount that they will let you borrow for a new motorcycle. I said, yes, of course. We went through it, got the hard inquiry. They pulled only from TransUnion. And then I was instantly approved for $68,000 for a motorcycle. I'm like, yo. Who buys a $68,000 motorcycle? But I didn't do that. I bought what I want. I got my Harley Davidson and I was happy. I waited two days. They actually mailed me my check in the mail for my pre-approval for purchasing the motorcycle. And then what I did is I put a deposit to hold the motorcycle at the Harley Davidson dealership until the check came in. And then I came in, they tried to finagle me. They tried to get me to run my credit. Oh, we believe that we can beat them. You know, Harley Davidson has great finance. I'm not interested, bro. I'm doing my financing. I'm sticking to my guns. They did not like it. They actually tried to hustle me and tell me, uh, well, since you're not doing the financing with us, we're going to have to do a $2,500 down payment to hold the bike. I said, I don't care. It doesn't matter to me. That's what I said to the finance manager. As soon as he walked away, I had already had a car conversation with the actual salesperson. He told me, Oh, all you have to do is put, put down $200. And so I told him, I was like, all right, man, let's go do this, this, this actual deposit. I'll put my $200 down. I put my $200 down. and I walked by the finance manager. I said, hey man, thank you for all your help today. He just got hustled. He didn't get me for the 2,500. They only got the $200 deposit and that was it. Have the conversation with the salesperson first when you're ever going to have to do any type of deposit for the vehicle before they even get to the finance manager because a lot of times these salespeople don't communicate properly with the finance manager and they have no idea what either one of them has said because they don't want to step on each other's toes in front of you. This has happened to me multiple times and it's worked every single time. Navy Federal is going to come in with a 4.09% APR on new vehicles. Now, remember, if the term is going to be longer, it's going to cost you more money. With used vehicles, you're looking at 4.99%, and they also do refinance vehicles also. But they will go all the way up to 96-month terms. That's absolutely insane. It's one of the highest I've seen. I think there's another one out there. It's DCU does the highest auto loan term. But like, yo, 96 months is outrageous. You're going to be upside down on that car loan, just so you know. What if I told you all of this was absolutely trash? I know, that's crazy, right? All these credit unions have great rates to purchase a new car, a used car. But what if I told you that purchasing a new car or even possibly a used car is probably one of the worst financial decisions you're ever going to make? The majority of Americans focus on their monthly payment. And as long as a dealership can extend that loan as long as they need to, to get that payment, they're going to do it. This is why you don't want to do the financing with the dealership credit unions. They lock in your rate an actual dealership can finagle your interest rate So let's say for instance the bank offers you eight percent interest rate The actual dealership has the ability to increase that interest rate one two or three points depending on your state It's gonna vary So you're going to go from an 8% interest rate that the actual bank offered you all the way up to an 11% interest rate. And the actual dealership is going to make money from that interest rate every single month that you're paying. And that's the reason why they want you to do the actual financing with them. And this is also what causes people to get upside down in auto loans because they just extend the term really longer. And then they're like, okay, well, I got my actual car payment that I want. They're not focused on the interest rate. This is what we call them. buy rate at a dealership it is very important to understand what the buy rate is ask them to see the call sheet ask them to see the buy rate i guarantee they don't want you to see it but for years we've been taught to buy our car purchase it outright a new or a used car When in fact, it's probably one of the worst financial investments you're ever going to make. Because there's people out there that say, oh, you know, you buy your car and it's a great financial investment. It's not an investment. Let's just go ahead and throw it out the window, okay? There's no way that a car is actually an investment because you can wreck it. It can be gone and guess what? Now your money's gone. But what if I told you lease? Seen options are the better options if you're someone that's focused on your actual car payment and how much it's gonna cost you every month I know you're gonna say all but you know, I don't want to go over the mileage You can choose your mileage and stick to that now if you go over it Of course, you're gonna be penalized at the end of your term But this is the number one way that you can get out of a negative equity car loan is with a lease. We're going to use Honda as an example here. Let's take a look at this massive screen of all of these lease options with Honda. Remember, every manufacturer is going to be different, so you're going to have to do your actual homework. Now, let's take a look at this. You're looking at a 2024 Honda Accord. You can get it for $289 a month for 36 months. Please tell me why you would want to purchase an actual car, purchase this Accord sedan. outright, you're going to be looking well over a $400 a month car payment. Some people are all the way up to $600 car payments with a Honda Accord when you can actually lease it and be done with it in 36 months. All right, let's kind of look at this in a different aspect also. Let's say, for instance, you're upside down in your car loan with Toyota, Toyota Camry, okay? You owe more than $10,000 above the actual value of the car. That means you have negative equity. A lot of times, banks won't refinance it for you because you're upside down. They just don't see the incentive. But if you go and look at a lease, look at all the different lease options, get that monthly payment as low as you possibly can and see what type of incentives they have. Kind of like what we talked about earlier where if you use actual PenFed, their incentive is a $5,500 discount on a Mercedes-Benz. That's an incentive. They're going to actually lower that amount. So when you do the lease and you have, let's say, hypothetically 10... $10,000 of negative equity, then you have some incentives. Those incentives will slide in place of the money that they're giving you as an incentive. Then you want to put some money down. Yeah, you heard me. Money down. It's not illegal. This is going to incentivize the bank to do the deal with the lease. And once you do that, yes, your monthly payment is going to increase. Understand that. But it's only going to be for 24 months all the way up to 36 months. Don't do 48 month terms. That's just kind of silly. You're right back in the same spot. If you can do a 36 month to a 40... to a sorry 24 month or a 36 month term that's going to help you and then once that 36 month term ends that negative equity was rolled into that lease you turn in the car and you're done you'd no longer have any negative equity. I know it sounds crazy, but it 100% works. So remember, you can get rid of your negative equity by rolling it into a lease, but you're going to have to come out of pocket with the down payment. And you're going to have to pay a slightly higher monthly payment because you're moving that over into that new term. But in 24 months to 36 months, it's all going to be gone. You, you literally are going to start from fresh and you don't have any negative equity. You don't owe some astronomical amount to the bank. and you're like worrying, is this car going to make it? Let's go look at the actual leasing options at Toyota also. Look at Toyota. Toyota has a 2025 Camry LE at $319 a month for the monthly payment and 36 months, $3,600 due at signing. Remember, this is going to be standard. If you don't have money to put down on a lease, you have no business buying a new car. I'm just going to tell you. Anytime that I purchase a new car, I've only purchased new cars twice in my lifetime because I know what I'm doing and I know that I'm going to be in negative equity. What I do is I put a down payment to actually put me in positive equity. And a lot of people don't want to do that, but I do that. And now I'm just out of the entire loan buying process. I'm a Lee C, okay? It's my favorite thing. I can get a new car every two years, every three years, never do four year terms. I'm saying that right now, but two years and three year terms are the best options for you. And some of these manufacturers. will actually include the maintenance on the vehicle. So all you're paying for is tires if you need them. So I hope you enjoyed this video. We covered another big one on how to purchase a car and get out of that negative equity with your current car loan if that actually is you. Now make sure that you watch this next video because it is about an American Express credit card you may not actually know about. And if you felt that I brought you some value in this video, make sure that you don't forget and subscribe to increase your credit score.

Part two, we're going to go over the top five credit unions that you can look at in case you're in the market to purchase a car. And part three, I'm going to talk about how to get rid of negative equity. So if you purchase the car and you actually owe more than what the car is worth, then you're what we call upside down and alone and you have negative equity. On today's episode, I'm going to cover this one at the very end of this video on how to get rid of that negative equity permanently.

So let's jump into this video because we got a lot of ground to cover. Rule number one, never ever let a dealership run your credit unless, unless you're doing a lease and you have top tier credit. I'll be honest with you. There are actually some manufacturers out there that will give you a decent lease option If you have anywhere from a 600 to a 680 it is totally possible some of these actual Manufacturers are getting really desperate right now And they're lowering their requirements to get an auto loan because guess what car manufacturers are not selling cars But we want to shop the car rate first the interest rate is what's going to determine your payment and exactly how much you're willing to pay. So we want to shop the rate first and then the car second.

because there are hundreds, possibly thousands of lenders out there that will actually see if you are pre-qualified for an auto loan with them before you even get a hard inquiry. So don't play this like an amateur and walk into the dealership and then say, yeah, I'm going to go ahead and let them run my credit. Again, we don't want to do that unless we're doing a lease.

And honestly, if you're going to do a lease, you can go directly through the actual website of the car manufacturer and do the whole process with them. and not even have to deal with the dealership. Simply open up Google and do an incognito browser or a private browser because you don't want it to know where you're at and that it's tracking you so it'll give you all of the best options for any pre-approved auto loans. So you're literally just gonna type in pre-approved auto loans and you're gonna get a list of all of the actual lenders that will pre-approve you with no hard inquiry.

Now usually they'll get you pre-approved and then when you decide to move forward, there will be a hard inquiry. Just be aware of that. This makes sense because if you're not, not pre-approved then there's no need to move forward but if you are pre-approved then guess what that means you can move forward and there's going to be a hard inquiry but you know now that you have a higher chance of actually being approved and they're going to tell you what your interest rate is going to be and how much they'll actually let you borrow to purchase a car once you get your pre-approval and the bank approves you they say hey this is going to be your interest rate this is going to be your actual amount that we're going to let you borrow then now you start to shop for the car and you never ever tell the dealership that you are pre-approved you negotiate the out-of-door price.

Make sure there's no bunch of junk fees on there that you're not actually comfortable with. If there's something on there you don't like and they don't wanna remove it, walk away from the deal. Because remember, dealerships are not selling cars right now.

They need every sale that they can get. They don't wanna work with you, walk away. And what I just taught you, you can apply it to used and new cars.

And I'm gonna tell you right now, you should never purchase a new car Because the moment you drive it off the lot, you're going to lose 25% of the value of that car. And it's just not worth it, honestly. Unless, okay, here we go.

Unless it's a lease. Because you can walk away from that deal, honestly, in 24 months, 36 months, or 48 months. And you're scot-free.

You don't owe anything else. And you can get yourself into a newer car if you want to. That's the only time you should ever purchase a new car is with a lease.

Now let's move on to part two, which is the best credit unions for auto loans. Coming in at number five is NASA Federal Credit Union. Anyone can join this credit union.

It's one of my favorites. Now NASA Federal Credit Union is coming in with a low APR of 5.49% with the terms of 36 months all the way up to 84 months. That's an absolutely long term.

But remember, The longer the term, the higher the interest rate is going to be because it is deemed a high risk loan. And NASA Federal Credit Union does absolutely offer refinancing. If you've got a bad term on your loan and you want to get out of the interest rate, you can potentially refinance it with this credit union. And the reason why it made the list, because guess what? There's no impact to your credit score to check your rate and see if you are pre-approved with NASA Federal Credit Union.

That's the best part about it. If you're trying to go with a credit union, whether you have good credit or bad credit, you want to establish a relationship first to get the best interest rate and the highest amount possible. Open up a checking, a savings, and do a direct deposit.

You want 75% of your money going into your new relationship with that credit union. You also want to do a secured loan with a term of a minimum of 24 months. Do all of this for a minimum of 91 days.

If you can push it to six months, all the way up to a year, kind of pre-plan that you're actually gonna purchase a car. This is going to help establish your relationship and get you approved with that credit union. And if you're someone that has top tier credit that's above a 725, you will most likely get approved if you just go through their process, but understand, you'll get the better rate. if you build the relationship and you'll get a larger amount for that auto loan because you've already established that relationship and they trust you. Coming in at number four is Alliant Federal Credit Union.

Now, Alliant is going to be coming in at an interest rate of 5.19% APR on a new auto loan or a used one. Now, remember, of course, the longer the term, the higher the interest rate. I'm going to keep saying that so you really understand it because a lot of people don't get that and they're always just focused on the actual car payment.

But Alliance has what's called a car buying program. If you go through their car, their car buying program, you can potentially lower your interest rate all the way down to 4.69%. If you go through their program to purchase a new or used car, and also be aware, all of these credit unions offer extended warranties and gap coverage. That's huge.

And that's really important that you get gap coverage. If you purchase a new car, because if you purchase that new car, and then you wreck it, the actual insurance company will only cover what the car is worth. And if you actually owe more than what the car is worth, then you're stuck holding the bill, and we don't want any of that nonsense.

If you go through their actual car buying program with Alliant, you can build the car exactly how you want it, and then just actually go through the whole financing process with them. And then you just go pick it up at the dealership whenever you're ready, and it's done. And Alliant does offer auto term loans all the way up to 84 months. Coming in at number three is Langley Federal Credit Union. Anyone can join it, which is great, and this is the reason why I love it.

They're going to be coming in at an interest rate of 4.49% with auto loan terms, all the way up to 75 months, if I can say that properly. Now, what I found really interesting about Langley was they offer free auto protection. So get GAP insurance for free with Langley when you purchase your next vehicle with us.

Guaranteed asset protection is what GAP stands for. covers the difference between what your car is worth and what you owe if it gets totaled or stolen so that's a huge deal right there you're gonna get that for 100 free if you go through laneley federal credit union and again anyone can join and coming in at number two is going to be pentagon federal credit union now pentagon federal credit union will actually finance up to 125 of the loan to value rate of the car meaning if you have some negative equity that you have to roll over you can actually do that with Navy, I'm sorry, with Pentagon Federal Credit Union up to 125% of the value. That's pretty crazy. And they also have the pre-qualified tool that is available to see if you qualify for an auto loan before you even actually go through the process. And they do also offer a car buying service.

And PenFed is one of the very few credit unions that will do an auto loan all the way up to $150,000. and they do start off with terms from 36 months all the way up to 84 months with penfed I want to give a special shout out to all my beasters out there that are working hard to fix their credit using dispute beast the most advanced AI credit repair software ever created and specifically to Wesley whose Wesley's credit score went up over 226 points after just two rounds with dispute beast and also Marcus Marcus's credit score went up 337 points after just two rounds with dispute beast and let's not forget Richard Richard's credit score went up 446 points after just one round with Dispute Beast. Dispute Beast is going to be pinned at the very top of the comments and in the video description for anybody that needs to fix their credit.

Last part's the most important. Now be aware if you use the car buying service through PenFed, it is powered by Trucar and they do have exclusive offers for their members. So let's just go over all the major brands here. So you're looking at Mercedes-Benz save up to $5,500 on select Mercedes-Benz vehicle.

Alfa Romeo save up to $1,000 on select Alfa Romeos. Chrysler save up to $1,000 on Chryslers. Dodge, save up to $1,000 on Dodge.

Fiat, save up to $1,000. Jeep, save up to $1,000 also. And Ram, you're gonna save up to $1,000 also.

So all of these are exclusive offers specifically just with PenFed. Now coming in at number one, you are looking at Navy Federal Credit Union. Yes, not anyone can join this credit union, but if you can get in, it is totally worth it.

I've been through the car buying process. Actually, the motorcycle buying process, it was very easy. I actually got my Harley Davidson financed through Navy Federal.

I went on, actually, I called them and told them I was in the market to purchase a motorcycle. I was pre-approved in literally like less than five minutes. And they told me, would you like to proceed so we can see exactly what your rate's going to be and what the amount that they will let you borrow for a new motorcycle.

I said, yes, of course. We went through it, got the hard inquiry. They pulled only from TransUnion.

And then I was instantly approved for $68,000 for a motorcycle. I'm like, yo. Who buys a $68,000 motorcycle? But I didn't do that.

I bought what I want. I got my Harley Davidson and I was happy. I waited two days.

They actually mailed me my check in the mail for my pre-approval for purchasing the motorcycle. And then what I did is I put a deposit to hold the motorcycle at the Harley Davidson dealership until the check came in. And then I came in, they tried to finagle me.

They tried to get me to run my credit. Oh, we believe that we can beat them. You know, Harley Davidson has great finance. I'm not interested, bro.

I'm doing my financing. I'm sticking to my guns. They did not like it. They actually tried to hustle me and tell me, uh, well, since you're not doing the financing with us, we're going to have to do a $2,500 down payment to hold the bike.

I said, I don't care. It doesn't matter to me. That's what I said to the finance manager. As soon as he walked away, I had already had a car conversation with the actual salesperson. He told me, Oh, all you have to do is put, put down $200.

And so I told him, I was like, all right, man, let's go do this, this, this actual deposit. I'll put my $200 down. I put my $200 down.

and I walked by the finance manager. I said, hey man, thank you for all your help today. He just got hustled.

He didn't get me for the 2,500. They only got the $200 deposit and that was it. Have the conversation with the salesperson first when you're ever going to have to do any type of deposit for the vehicle before they even get to the finance manager because a lot of times these salespeople don't communicate properly with the finance manager and they have no idea what either one of them has said because they don't want to step on each other's toes in front of you.

This has happened to me multiple times and it's worked every single time. Navy Federal is going to come in with a 4.09% APR on new vehicles. Now, remember, if the term is going to be longer, it's going to cost you more money. With used vehicles, you're looking at 4.99%, and they also do refinance vehicles also. But they will go all the way up to 96-month terms.

That's absolutely insane. It's one of the highest I've seen. I think there's another one out there. It's DCU does the highest auto loan term. But like, yo, 96 months is outrageous.

You're going to be upside down on that car loan, just so you know. What if I told you all of this was absolutely trash? I know, that's crazy, right?

All these credit unions have great rates to purchase a new car, a used car. But what if I told you that purchasing a new car or even possibly a used car is probably one of the worst financial decisions you're ever going to make? The majority of Americans focus on their monthly payment. And as long as a dealership can extend that loan as long as they need to, to get that payment, they're going to do it.

This is why you don't want to do the financing with the dealership credit unions. They lock in your rate an actual dealership can finagle your interest rate So let's say for instance the bank offers you eight percent interest rate The actual dealership has the ability to increase that interest rate one two or three points depending on your state It's gonna vary So you're going to go from an 8% interest rate that the actual bank offered you all the way up to an 11% interest rate. And the actual dealership is going to make money from that interest rate every single month that you're paying. And that's the reason why they want you to do the actual financing with them.

And this is also what causes people to get upside down in auto loans because they just extend the term really longer. And then they're like, okay, well, I got my actual car payment that I want. They're not focused on the interest rate. This is what we call them. buy rate at a dealership it is very important to understand what the buy rate is ask them to see the call sheet ask them to see the buy rate i guarantee they don't want you to see it but for years we've been taught to buy our car purchase it outright a new or a used car When in fact, it's probably one of the worst financial investments you're ever going to make.

Because there's people out there that say, oh, you know, you buy your car and it's a great financial investment. It's not an investment. Let's just go ahead and throw it out the window, okay? There's no way that a car is actually an investment because you can wreck it.

It can be gone and guess what? Now your money's gone. But what if I told you lease? Seen options are the better options if you're someone that's focused on your actual car payment and how much it's gonna cost you every month I know you're gonna say all but you know, I don't want to go over the mileage You can choose your mileage and stick to that now if you go over it Of course, you're gonna be penalized at the end of your term But this is the number one way that you can get out of a negative equity car loan is with a lease.

We're going to use Honda as an example here. Let's take a look at this massive screen of all of these lease options with Honda. Remember, every manufacturer is going to be different, so you're going to have to do your actual homework.

Now, let's take a look at this. You're looking at a 2024 Honda Accord. You can get it for $289 a month for 36 months.

Please tell me why you would want to purchase an actual car, purchase this Accord sedan. outright, you're going to be looking well over a $400 a month car payment. Some people are all the way up to $600 car payments with a Honda Accord when you can actually lease it and be done with it in 36 months. All right, let's kind of look at this in a different aspect also.

Let's say, for instance, you're upside down in your car loan with Toyota, Toyota Camry, okay? You owe more than $10,000 above the actual value of the car. That means you have negative equity.

A lot of times, banks won't refinance it for you because you're upside down. They just don't see the incentive. But if you go and look at a lease, look at all the different lease options, get that monthly payment as low as you possibly can and see what type of incentives they have. Kind of like what we talked about earlier where if you use actual PenFed, their incentive is a $5,500 discount on a Mercedes-Benz. That's an incentive.

They're going to actually lower that amount. So when you do the lease and you have, let's say, hypothetically 10... $10,000 of negative equity, then you have some incentives.

Those incentives will slide in place of the money that they're giving you as an incentive. Then you want to put some money down. Yeah, you heard me. Money down.

It's not illegal. This is going to incentivize the bank to do the deal with the lease. And once you do that, yes, your monthly payment is going to increase. Understand that. But it's only going to be for 24 months all the way up to 36 months.

Don't do 48 month terms. That's just kind of silly. You're right back in the same spot. If you can do a 36 month to a 40... to a sorry 24 month or a 36 month term that's going to help you and then once that 36 month term ends that negative equity was rolled into that lease you turn in the car and you're done you'd no longer have any negative equity.

I know it sounds crazy, but it 100% works. So remember, you can get rid of your negative equity by rolling it into a lease, but you're going to have to come out of pocket with the down payment. And you're going to have to pay a slightly higher monthly payment because you're moving that over into that new term. But in 24 months to 36 months, it's all going to be gone.

You, you literally are going to start from fresh and you don't have any negative equity. You don't owe some astronomical amount to the bank. and you're like worrying, is this car going to make it? Let's go look at the actual leasing options at Toyota also. Look at Toyota.

Toyota has a 2025 Camry LE at $319 a month for the monthly payment and 36 months, $3,600 due at signing. Remember, this is going to be standard. If you don't have money to put down on a lease, you have no business buying a new car.

I'm just going to tell you. Anytime that I purchase a new car, I've only purchased new cars twice in my lifetime because I know what I'm doing and I know that I'm going to be in negative equity. What I do is I put a down payment to actually put me in positive equity. And a lot of people don't want to do that, but I do that. And now I'm just out of the entire loan buying process.

I'm a Lee C, okay? It's my favorite thing. I can get a new car every two years, every three years, never do four year terms. I'm saying that right now, but two years and three year terms are the best options for you. And some of these manufacturers.

will actually include the maintenance on the vehicle. So all you're paying for is tires if you need them. So I hope you enjoyed this video. We covered another big one on how to purchase a car and get out of that negative equity with your current car loan if that actually is you.

Now make sure that you watch this next video because it is about an American Express credit card you may not actually know about. And if you felt that I brought you some value in this video, make sure that you don't forget and subscribe to increase your credit score.

Transcript for:Top Credit Unions for Auto Loans

Transcript for:
Top Credit Unions for Auto Loans