Buying Your Car the RBCU Way
Helping members get the best auto loan deal
This is the car buying time of year. Right now, RBCU’s best auto loan rates are as low as 1.89% APR*. Obviously, those are outstanding rates but don’t forget: a great rate is only part of the picture. Even when our rates are higher than they are now - even when they are higher than some of your other options - getting a loan with RBCU is almost always a better value for you than the random financing “deals” a dealership will offer. Buying a new car (or a gently used car) is a big purchase. You owe it to yourself to think through the process carefully before being subjected to the “hard sell” onslaught of a dealership.
Do you want your auto loan to stay with RBCU?
We know from years of experience that many of you care deeply about the fact that RBCU is a long-term supporter of the schools and community groups in Richfield, Bloomington, and Edina. We know that for you -- and those who think like you -- it matters a great deal that the credit union you’ve chosen to belong to is out there year after year, substantially giving back to the communities in which you live, work, and play. You know that by supporting RBCU, you are supporting thousands of your neighbors; school kids and seniors alike.
A related question you should ask yourself is: how much value do you attach to having all of your banking accounts (including a car loan) housed in one trusted credit union location? With RBCU’s free online banking, bill pay, and eStatements, keeping tabs on all of your accounts and loans is convenient, inexpensive, and secure.
Do you trust the sales staff at auto dealerships to do what is best for you concerning the financing of your next vehicle?
The simple answer to the above question is: if you do, you shouldn’t. That isn’t to say that there aren’t many kind, caring, and competent sales staff at dealerships. There are. But what you have to keep in mind is that they are highly trained and highly motivated people with one goal: to sell you a car off their lot. NOW.
To make the sale as fast as possible, they often focus on just a few things: the monthly payment, the rate, and loan term. They can do this because most people mistakingly believe these are the only important factors to consider in car financing.
Unsurprisingly, dealerships work hard at having many different bank and credit union financing packages available for their customers. It is relatively easy for them to make it seem like they’ve offered you the very best monthly payment possible - often with a lower rate than you thought you’d be able to get. They are more than happy to make the conversation all about the size of the payment and the loan rate as this means the potential customer is less likely to negotiate on the actual price of the car.
Savvy borrowers (like you), realize that even with a low monthly payment and a low APR, the “great deals” at dealerships can actually cost more than even higher rate RBCU auto loans would. Some common ways the dealership loans turn out to be more expensive than RBCU include: high costs for GAP Coverage, high costs for Extended Vehicle Warranties, promotional short-term rates, penalties for paying off the loan early, or extremely long term loans.
Do you trust RBCU staff to do what is best for you concerning the financing of your next vehicle?
We hope you do and if you don’t yet, we hope you give us the opportunity to earn your trust by sitting down with a Member Service Representative and getting pre-approved before heading to a dealership. When you do this, please feel free to ask our MSRs about the specifics of our auto loan. Calculate different loan scenarios (based on such things as different levels of borrowed funds, varying rates, and loan terms) and be sure to pay special attention to the amazing deals RBCU can offer you on:
- Guaranteed Asset Protection (GAP) Coverage. RBCU charges $349 for this. Dealerships charge 2, 3, or even 4 times as much.
- Extended Vehicle Warranty. Members can choose different levels of
coverage to suit their needs and members generally can get packages for
much less than what is found at a dealership.
Getting the two products above at a dealership will add hundreds or even thousands of dollars to your final loan amount. Over the typical 5-year loan term, this can be a huge hidden cost compared to the same products from RBCU.
A pre-approval for an RBCU auto loan allows you to cut through all of the confusing, high-pressure nonsense that so often accompanies the car buying process. Having all of your financing taken care of before you go to the car lot lets you focus on what is truly the most important aspect of the sale -- negotiating the purchase price of the vehicle. You can be sure you are getting the best auto loan value possible from a credit union you trust; a credit union dedicated to giving back to your community and committed to your financial success.
We look forward to helping you buy your next car the RBCU way!
* APR is Annual Percentage Rate. Rate assumes Auto Pay and is based on term, age of collateral, and credit qualifications. Rate subject to change.