Consumer Auto Credit: 2022 Reviews

Consumer Auto Credit: 2022 Reviews
Consumer Auto Credit: 2022 Reviews

A consumer should shop for an auto credit from a variety of lenders, regardless of whether the car is new or used.  The terms of the loan will depend on the price of the vehicle and the interest rates available to you.

The simple fact that a new car will cost more than an identical used car will affect the amount of money borrowed.  However, when buying a new car, some manufacturers offer low or even 0% financing options.  In general, new vehicle rates tend to be lower for these reasons.

How Does Consumer Auto Credit Work?

A consumer auto credit is secured; meaning the value of the car is security for the lender.  The creditor has protection against default.  In other words, if you default or default on the loan, the bank can seize the underlying asset.  In this case, they can take your car.

So, the big difference between auto loans and other consumer loans is that auto loans are a secured loan that must be used to purchase a vehicle, while other personal loans can be used to purchase almost anything and are unsecured. 

For this reason, the interest rates on auto loans are usually lower than on personal loans because the lender takes on less risk as they can seize the vehicle to cover the unpaid loan if necessary. 

Auto loans are also term loans.  They are paid back over a period of time, such as three, four or five years.  In some consumer loans, you can also choose a specific repayment period.

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Consumers Credit Union Review

Consumers Credit Union, also known as CCU, offers new and used auto loans and refinance loans.  It also offers lease buyout loans, but only at the initiative of a member of the dealership. 

CCU is particularly flexible among auto lenders, with no age or mileage restrictions.  It also works with members who need short-term car loans for less than 12 months.

Current auto loan rates are available on the CCU website, but these “lower” rates are only available to applicants with excellent credit.  On the website, applicants can also get a rate estimate without affecting their credit score. 

If they proceed with the auto loan, CCU will initiate a hard loan foreclosure, which will slightly lower the applicant’s credit score.

CCU offers a discount of 0.25 percentage points if automatic loan payments are set up.  Rates listed on the credit union’s website reflect this discount.

Borrowers have different ways to apply for a car loan at CCU.  In addition to applying online or by phone, applicants can apply at any CCU location in Illinois or 85 dealerships in Illinois and southern Wisconsin. 

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Who Is Consumer Auto Credit For?

  • If you have a good credit history.  CCU has a higher minimum credit score than other auto loan providers.
  • People who want flexible loan terms.  CCU will work with members who require a loan term of less than a year.  It also offers flexibility for other eligibility criteria, such as no minimum credit history or income requirements.
  • If you want to take advantage of the benefits of credit union membership.  Members who arrange automatic payment from their CCU account or schedule a transfer through online banking receive the highest discount on their auto loan rate.  Borrowers can manage their account and credit through the credit union’s website and mobile banking services.

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What Are The Pros Of Consumer Auto Credit?

  • Offers estimated rates on the website using a soft credit check.
  • Accepts applications online, by phone, in-store or at authorized dealerships in Illinois and Southern Wisconsin.
  • Offers a discount with automatic payment.
  • Provides a service to buy a car online at a discounted price and pre-approved for a loan.
  • Allows co-signers.

What Are The Cons Of Consumer Auto Credit?

  • Credit union membership is required to obtain a loan.
  • No discounts when using the online car buying service.
  • Social security number is required for online rate calculation.

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Consumers Credit Union Auto Loan Rates

Consumers Credit Union offers auto loans starting at just 3.49%.  Although based in Illinois, Consumers Credit Union has open membership, meaning access to its great rates is available nationwide after paying a membership fee to the Consumers Cooperative Association.

Credit unions tend to offer lower rates than big banks.  Even among credit unions, Consumers is extremely competitive.  Two financial institutions that are converging include PenFed Credit Union and Navy Federal Credit Union.

PenFed membership is open to anyone.  As with Consumers Credit Union, you will be required to make a nominal minimum deposit into your member savings account.  But to join Navy Federal Credit Union, you’ll need some military affiliation.

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How To Get Finance From Consumer Auto Credit Facility

Apply

  First, you need to complete an online loan application by clicking on the link CONSUMER AUTO CREDIT SECURE LOAN APPLICATION or by calling (727) 944-6228 and filling out the required information.

Discuss the details

A Consumer AutoCredit representative will contact you to discuss the various financing options they provide.  Then you can choose a loan with a low interest rate with the desired monthly or annual payment.

Start shopping now

Select the vehicle you wish to purchase and learn about its financing services to eliminate any future hurdles.

Complete documents for the loan

Once you’ve found the new car you want, email or fax the purchase information and other information related to the sales agreement, then sign the title deed for your car after visiting your local Consumer Auto Service office.

Funds provided to the Dealership

The consumer car loan then makes the payment to the seller or dealer, after which you can pick up the car of your choice.

Conclusion

A Consumer Auto Credit has collateral, meaning the value of the car is security for the lender.  The creditor has protection against default.  In other words, if you default or default on the loan, the bank can seize the underlying asset. 

For this reason, the interest rates on auto loans are usually lower than on personal loans because the lender takes on less risk as they can seize the vehicle to cover the unpaid loan if necessary.  Car loans are also term loans.  They are paid back over a period of time, such as three, four or five years.  In some consumer loans, you can also choose a specific repayment period.

Consumer Auto Credit FAQs

What Is The Most Important Factor To Consider When Comparing Loan Interest Rates?

When buying a car loan, you need to consider more than just the interest rate.  Will there be additional fees?  Do you need a down payment to qualify for this rate?  What is the total amount of the loan and how much interest will you pay over the life of the loan?

When Does It Make Sense To Refinance An Existing Car Loan?

Often, if you still have most of your loan to pay off and interest rates have gone down or your credit has improved, it may be a good idea to refinance your loan.  Use the refinance calculator to determine if refinancing might be the best option for you, but be sure to include any fees associated with refinancing your loan in your calculations.  Sometimes the cost of refinancing does not exceed the available savings.

How Do You Determine How Much Your Car Payment Should Be?

Everyone is different and there is no rule of thumb to follow when determining how much a car payment should be.  While some will say that vehicle expenses should be less than 20% of your net income, there is much more to consider.

References

  • investopedia.com – Expert Explanation of How Auto Loans Work
  • nerdwallet.com – Consumers Credit Union Auto Purchase and Refinance Loans: 2022 Review

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