Welcome to the Finance Department. Here you can use our online form to get a quick and accurate response on financing your next vehicle.
Below, you are going to be educated on a few "tricks" of the dealership "trade".
FINANCING...ENTER WITH CAUTION !!!!!!!!!!
When it comes to financing your new vehicle, combining a manufacturer's rebate along with your credit union's low APR %, is a winning combination.
Why is it that whenever you go to a dealership, they want to arrange financing for you or switch you to another credit union? You guessed right, it's for their benefit, not yours. When a dealer uses their own financing, they are able to "write up" the interest rate and they get paid off the difference. This is called "dealer reserve". If you are approved at a rate of 4.9% but they contract you at 6.9%, the finance department can make a profit of well over $1000 depending upon the amount of your loan. And you will never know. That is why they will sell you the car at "their cost"(invoice), because they are making their money in the financing or other "aftermarket products". At CU DirectAuto we work directly with your credit union and you will never be a victim of "dealer reserve". You will be contracted at the rate "your" credit union approves you for, not a penny more. Click on the link below and see the difference of "Dealer Financing vs. Credit Union Financing".
Dealer Financing vs. Credit Union Financing
Buy or Lease?
Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.
Lessee Beware !!!Use this calculator to help you determine your monthly auto loan payment or your auto purchase price. After you have entered your current information, use the graph options to see how different loan terms or down payments can impact your monthly payment. You can also examine your complete amortization schedule by clicking on the "View Report" button.
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Loan payments contribute to the eventual ownership of a vehicle, while lease payments apply only to the short-term use of a car.
Owning a lease vehicle is possible if purchased outright after the lease period ends.
A typical lease period runs between 24 and 48 months.
Three important factors - adjusted capitalized cost, residual value and the money factor - determine the monthly rate of a lease.
Closed-end leases set a fixed residual buy price at the beginning of the term, while open-end deals base the final buy price on a vehicle's actual market value at the end of a lease.
Pay more money down initially to reduce monthly loan payments. Otherwise, a typical down payment ranges between 10 to 20 percent of the total cost.
Many used vehicles require down payments of at least 20 percent and include interest rates between 9 to 10 percent.
Lease agreements usually limit mileage from 12,000 to 15,000 miles annually. Beyond these figures, fees in the range of $0.10 to $0.25 per mile begin to accumulate.
If you plan on customizing your vehicle, you need to finance with a loan. Leased vehicles must be returned under factory specification.