Car Loan Frequently Asked Questions

• How much can I borrow to purchase a car?

  The answer to this question is different for everyone, and many factors play a role in this, including your credit score, income, expenses, and any down payment you plan to make. We recommend getting preapproved for a loan to learn how much you qualify for. That also gives you leverage when negotiating at a dealership.

• How does interest on my auto loan work?

  Most auto loans have interest that accrues daily, starting the day you sign the loan until the day you pay it off. The total amount of interest you pay is based on your loan balance, interest rate, and the number of days in the year. A part of each monthly car payment applies to the principle, and another part of it applies to the interest.

• How quickly can I get a loan to buy a car?

  We have a quick and easy online application and offer electronic document signing, so you don’t need to come into one of our branches. From there, we often fund loans the same day they’re approved. So once you apply for a loan, you should be ready to buy your new car within 1-2 business days.

• How do I get the best auto loan rate?

  To get the best auto loan rate, you’ll want to make sure your credit is in tip-top shape before you apply. Also, the shorter your loan term, the lower your interest rate will generally be. It’s also wise to shop around for the best rate. Since we’re a member-owned not-for-profit, we have exceptionally low rates- usually lower than the big banks have.

  But if your credit is fair and you’re working to improve it, you can and should still apply for a car loan. You likely won’t get the very best rate, but you’ll still get a good one with us.

• Should I get an auto loan before I go car shopping at the dealership?

  Yes. It’s smart to at least get pre qualified before you go car shopping. That gives you an idea of how much you can and should spend, and it also gives you negotiating power at the dealership.