Auto Loans in Troy

Auto Loans in Troy, Michigan

If you’re looking to purchase a vehicle, your credit situation might keep you from getting the car you and your family need. Credit unions are often willing to work with individuals with bad credit to provide an affordable auto loan.

Furthermore, because credit unions are member-owned institutions, you can be confident that you’re not just another number. When you apply for an auto loan with a credit union, you can be sure that you’re working with a lender with your best interests at heart.

Don’t settle for anything less than you deserve for your next car. Take advantage of T&I Credit Union’s auto loan options to finance your auto purchase.

Understanding How Auto Loans Work

Many people must obtain financing to purchase a vehicle, and auto loans are a common way to finance a new or used vehicle purchase. An auto loan is a sum of money you borrow from a lender to buy a vehicle from a dealership or private seller.

The lender provides you with the loan to purchase the vehicle upfront, then charges interest over the life of the loan. You make monthly payments until you repay the loan, typically over 60, 72, or 84 months.

Most lenders require that you use the vehicle as collateral for the loan. If you default on the loan, the lender can repossess the vehicle. It’s important only to take out an auto loan if you’re confident you'll be able to make the required payments for the entire term of the loan.

For example, let’s assume the vehicle you want to purchase is $10,000. You decide on a 60-month term loan at 5.24% APR. With many lenders requiring a 20% downpayment, we’ll assume you place $2,000 down on your purchase, bringing your borrowed amount down to $8,000. Using a car loan calculator to come up with the monthly payment, you will pay an estimated $151.85 each month for the life of the loan. This amount does not include any fees that may come with the loan, such as tax, title, and license fees.

On the other hand, if you decide to borrow the same amount with an 84-month loan at a 6.24% APR, your monthly payment will drop to $117.79. The difference between taking out the 84-month loan from the 60-month loan is that you pay an extra $783.35 in interest payments for the longer loan term but have a smaller monthly payment, which helps if you are on a tight budget.

Getting the Best Interest Rate on Your Auto Loan

Consumers with higher credit scores should have no problem getting the best interest rates on their auto loans. Those with credit scores in the 670 to 739 range can receive an APR from T&I Credit Union as low as 5.24% on their new auto loans, while a 6.24% APR is available to consumers looking to buy used.

Specifically, our current interest rates (subject to change) for auto loans on cars made in 2016 or later are:

• 60 months: 5.24% APR

• 72 months: 5.74% APR

• 84 months: 6.24% APR

The Importance of Your Credit Score

A high credit score indicates to lenders that you’re a responsible borrower who will likely repay your loan on time. Alternatively, a low credit rating may lead lenders to believe you're a higher risk and less likely to repay your loan. As a result, your lender may only offer you a loan with a higher interest rate or make a larger down payment.

In some cases, your lender may deny you financing. Therefore, it’s essential to ensure your credit score is as high as possible before applying for a car loan.

You can do several things to improve your credit score, such as paying your bills on time, maintaining a good credit history, and using various types of credit. Also, checking your FICO score with the credit bureau can help you identify any mistaken entries that bring your credit score down.

You can also take advantage of T&I Credit Union’s credit counseling resources to help you repair your credit before applying for a vehicle loan.

Your Partner in Auto Finance

We know the importance of having a reliable car to get you to work and school. That’s why T&I Credit Union is dedicated to serving Troy and the broader Detroit Metro area with the best rates and terms possible.

Our team of loan officers can work with you to provide an auto loan that fits your needs, whether you have an established career or are fresh out of college. We have experience working with people with bad or no credit and strive to make your car ownership dreams a reality.

We also provide banking products, including:

• Checking accounts

• Savings accounts

• Money market accounts

• Debt consolidation

• Mortgage refinance

• Investment services

• Plus many other loans and lines of credit!

T&I Credit Union is proud to serve anyone who lives, works, or worships in the seven counties in the Detroit Metro area. We have many of the same customer service features as banks, including an online banking system for accessing your loan and payment information.

Stop by our branch and learn how you can replace your current vehicle with the quality vehicle you deserve.

Call us at 1 (800) 338-3908 to learn more about membership and auto loans!