Share on Facebook

Start Loan Pre-Approval

Why Pre-Approve?

Your loan can be pre-approved prior to your visit to a dealer. In most instances, your credit union loan officer will be able to pre-approve the amount needed for your purchase. This will allow you to visit the dealer, select the vehicle of your choice, and complete the retail purchase agreement at the dealership. After that, you can finalize the loan documents at the credit union to have us draft payment to the dealership. While these steps are being completed your sales representative will arrange final delivery preparation and, time permitting, you will be driving your new vehicle on the same day.

Important Auto Loan Terminology

Total Purchase Price

This is the total cost of your auto purchase. Include the cost of the vehicle, additional options and destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after-tax price.


Interest

Amount of money paid at regular intervals in addition to the purchase price for use of money lent.


Interest Rate

Annual interest rate for a loan.


Monthly Payment

Amount of money paid per month for your auto financing.


Term Length

Number of months before the lent money will be repaid based on the monthly payment.


Trade Allowance

Total amount given for a trade-in as part of the purchase. Trade-in vehicles can also reduce sales tax in some states.


Manufacturer Rebates

As an incentive, automobile manufacturers often offer cash rebates for purchasing a specific vehicle. In most cases, you must choose between low interest financing or a manufacturer rebate.


Low Interest Financing

Financing through the automobile manufacturer. These rates, which are usually significantly below the standard interest rates, are offered as an incentive from the automobile manufacturer. However, low interest financing may mean that you give up rebates or other incentives which could save you more money when combined with financing through your credit union. Even when offered low-interest financing, comparing your options is warranted.


Traditional Financing

Financing through the bank, credit union, or online lenders. Often the interest rate may be higher than the low interest financing, but in combination with manufacturer rebates is often lower.


Lease

A contract where one rents a car instead of committing to the purchase of a vehicle. Monthly payments are lower, but costs more over the long haul and you won't ever own the vehicle.


Amortize

To gradually pay off a debt over monthly installments.


Refinance

To finance something again, most often with a lower interest rate to lower monthly payments.


Down Payment

The lump sum of money paid down on the vehicle at the time of purchase. This amount will lower the monthly payment amount, but is not part of the loan itself.


Trade-In

To trade your old vehicle in as part of your deal with the car owner or dealership. This cuts down on the purchase price of obtaining the new vehicle.


Upside Down

When you owe more on your car than Black Book's fair market value says it's worth.