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When shopping for a new set of wheels, your first stop should be OC Federal Credit Union. While many people start at the dealer’s lot, you’ll enjoy a lower rate, a simpler loan application, and other big benefits when choosing to finance your car at your credit union.

Let’s take a look at the differences in the auto loan process.

Financing an auto purchase at a car dealership

At a dealer’s lot, the dealer will likely try persuading you to push your self-imposed car budget to the max or even to go over your ceiling price.

But, if you’re financing your car through the dealer, that’s only the beginning. Once you’ve chosen your car, you’ll need to submit a complicated auto loan application form, which the dealer sends to the finance companies it partners with. This can include lenders and financial institutions – even OC Federal Credit Union! The dealer will then share the lender offers with you and ask you to make your choice.

However, in most cases, the dealer is only the middleman. This means they are going to present your options in a way that most benefits them – and not you.

Most lenders will pay a larger commission for a car that is sold at a higher price and for a loan that is established at a higher APR. As a result, your dealer will always try to get you to sign up for a loan that is more expensive than what the lender is actually willing to offer you. Even a fantastic offer from OC Federal Credit Union will be presented as higher than it really is, or may not be presented at all.

Financing an auto purchase at a credit union

When you work with OC Federal Credit Union, you’ll be dealing with people who know who you are and what your financial reality is like. No one will try to push you into a loan you can’t afford.

The process of applying for a OC Federal Credit Union Auto Loan is simple, quick, and easy. [You can even apply online or over the phone.] Also, as a member of OC Federal Credit Union, you already have a headstart on getting that pre-approval.

One of the biggest advantages you’ll have when financing an auto loan through your credit union, though, is a lower APR. You’re working directly with the lender and you’ll only hear the actual rate we offer instead of the marked-up rate the car dealer presents to you. Also, credit unions famously offer loan rates that are consistently lower than those offered by large lenders and banks.

Another advantage you’ll enjoy at OC Federal Credit Union is a pressure-free setting when determining how much you can afford to pay each month toward your new car. In contrast, when you’re standing in the dealer’s lot surrounded by cars you wish you could afford, you’re more likely to make a decision you’ll later regret.