If you’re going to buy a car, why not get the best rate for your auto loan? At NorthStar Credit Union, we can provide the service you need, at possibly a better rate, so that you can save money. And who doesn’t like saving money?
Hi, It's Matt from NorthStar Credit Union.
In today's episode of "It's Just Math," we're going to talk about a five-year car loan. A lot of people think that you have to work with a car dealer for everything you would need for your car purchase, but we're going to talk about the ways in which Northstar Credit Union can help you save money when you're buying a car.
In this example, we're going to look at a loan of $30,000
One of the major components of buying a car is what rate of interest you're going to pay on your loan. With NorthStar Credit Union on a five-year loan, we can be as low as 3.99%.
Typically car dealers may come in around 4.49%. So, there's a difference in savings here on your interest of about $400!
Next, is on the car warranty. A lot of people like to have a warranty on their vehicle to help cover any major repairs or costs of fixing your car.
On average, a credit union can offer a warranty at a price of $1,850. Dealers typically are around $2,100 for the cost of their warranty.
The last component is going to be on gap coverage. This will help pay off your loan if your vehicle is totaled.
A credit union can offer gap coverage at about $399. Dealers will offer in a range of $500 to $1,000. So, there's quite a difference in the costs for the gap coverage.
When we look at all three components of your loan with your rate, warranty, and gap coverage, we can help you save over $1,000.
Why can we do this? Because we're a credit union and we're member-owned. We can offer all these benefits at a lower cost because we're owned by our account holders.
What could you do with an extra $1,000?