Credit unions are a popular way to finance vehicles. They tend to have lower interest rates and fewer minimum loan requirements than banks. And because credit unions establish relationships with their members, they’re often more willing to work with people who have poor credit.
Credit unions make money by charging interest on loans, collecting account fees and reinvesting money. So, if a member is unable to back the money they borrowed to purchase their vehicle, the credit union can take away their car and sell it to someone new.
If you’re considering purchasing a used vehicle, here are some benefits to buying a credit union repo.
Lower Prices
Certainly, the biggest benefit to buying any type of repossessed car is the cost savings. You’re not paying anywhere close to what you would pay for a used car at a dealership – and you can walk away with a better vehicle in return! Your savings all depend on the car you’re buying and the condition it’s in, but experts say you can save around 20 to 40 percent.
So why are the prices so low? Is it because the cars are in bad shape? Not necessarily. Credit unions aren’t in the business to sell cars and want them off their lot as soon as possible. To make these vehicles attractive, they must be priced competitively. However, in exchange for buying the car at a discount, you are buying it as-is.
Easier Financing Options
Another perk to buying a car from a credit union is that you can get easier financing options. Credit unions are motivated sellers so they’re often willing to negotiate and offer better loan terms if you get the financing through them. And depending on the cost of the car, you may even be able to pay in cash.
If you do need financing, repos work similarly to a new or used vehicle. To strengthen your offer, it’s helpful to get pre-approved for financing in advance. This way, the credit union will know that you are a serious buyer. Typically, there’s less paperwork compared to a dealership as well.
Safe, Trustworthy Sellers
If you purchase a vehicle from a private seller, you don’t know what you’re getting. While credit union vehicles are purchased as-is, you are still buying them from a reputable seller. If you browse the inventory on RepoFinder.com, you’ll see that our sellers provide as much information on each vehicle as possible.
Most sellers also encourage you to inspect the vehicle before signing the paperwork. They are not trying to rip off anyone – they are just motivated sellers looking to get rid of their repo inventory! For the best deals, keep an eye on the cars that you’re interested in. Credit unions slash their prices if no one bids on their vehicles.
Ready to find a credit union repo car that meets your needs and won’t hurt your bank account? Check out the inventory at RepoFinder.com for free!