Car Loans in Troy

Car Keys (Office Background)

A car is a valuable lifeline for getting to and from work and school, especially if you don't live near public transportation. If you need to buy your first car or replace your current vehicle, you will likely need auto financing to afford it.

The application process may seem complicated, but financing options through a credit union can make your next vehicle purchase easy. You can count on T&I Credit Union for fair loan rates and terms if you’re in the Detroit, Michigan metro area.

Learn how car loans work, where to find the best interest rates, and what type of car loans T&I Credit Union offers its members.

How Car Loans Work

When buying a car, you need a large sum of money upfront to purchase it from the dealership or private seller. If you don’t have the cash on hand, you will likely apply with a lending institution to obtain financing through an auto loan.

A car loan is a loan you repay over a predetermined period called a term in recurring monthly loan payments. Loan terms are typically 60, 72, or 84 months. Your loan will carry a fixed interest rate called an APR, which adds to the amount you pay back over the life of the loan. Your car loan interest rate depends on the lender and your credit score.

For example, you borrow $5,000 to buy a slightly used vehicle with a 60-month auto loan at 7.49%. In this case, you’d pay around $1,009.89 in interest over those 60 months and have monthly payments of about $100.17. However, if you extended the life of the loan to 72 months, you’d pay less in monthly payments, around $86.43, but more in interest at about $1212.68 over the life of the loan.

Car loans are generally available from banks, credit unions, and other financial institutions. You may also apply through the dealership's finance department, where you are buying the vehicle. However, these credit car loans may result in a high finance charge and loan rates built into the contract, so the dealership makes money on the sale.

You usually need good credit and a steady income to qualify for a car loan. Your loan approval amount will also depend on the vehicle's value and credit history. Down payments are also typically required, ranging from a few hundred dollars to 20% or more of the purchase price.

Finding the Best Interest Rates

Loan terms and conditions vary widely, but you can always find competitive auto loan rates at your local credit union. Since credit unions are nonprofit financial institutions, they can often provide better rates and terms without compromising on service.

Although you may still be approved with a lower credit score, you will have a higher interest rate, which increases the amount you pay over the loan term. When you apply for a car loan, it’s best to have the highest credit score possible to get a good rate on your loan.

If you have bad credit, a credit union like T&I Credit Union can help you improve your credit score through financial counseling services. With a higher credit score, typically between 670 and 739, you can get an auto loan with a low APR, saving you money in the long run. We offer rates as low as 6.49% on new auto loans and 7.49% on used car loans for members with excellent credit.

T&I Credit Union Car Loan Terms and Interest Rates

When getting a car loan, you have two options to help you balance your needs. You can choose a longer loan term, which means you will accumulate more interest over the life of the loan, or you can choose a shorter term that will translate to higher monthly payments but a lower rate.

T&I Credit Union members can benefit by applying for one of the following car loan options for new cars manufactured between 2015-2022:

60 months: 6.49% APR
72 months: 6.99% APR
84 months: 7.24% APR

For used cars manufactured in 2014 or prior, our 60-month, 7.49% APR loan can accommodate your purchase.

Car Keys (Office Background)

Obtaining a Car Loan With T&I Credit Union

To get started, you’ll need to become a member of T&I Credit Union. This requires opening up a checking or savings account. Once you’re a member, you can apply for a car loan.

After submitting your application, our staff will get back to you within one to three days to let you know if you’ve been approved. Once approved, you can choose the loan option that best fits your needs.

Getting Pre-Approval

Getting pre-approved will give you a better idea of what you can afford and help to avoid any surprises at the dealership. To get pre-approved, simply fill out an online application with your basic personal and financial information. Pre-approval takes 20 minutes and requires:

Proof of income and assets
Driver’s license
Social Security number
Proof of employment

When you’re ready to purchase your vehicle, contact your T&I Credit Union loan representative to walk you through the final loan application process.

Finance Your Next Vehicle With a Car Loan From T&T Credit

T&I Credit Union provides personal loans, auto loans, motorcycle loans, and much more at fair rates that help our community thrive. We’re always happy to answer your questions and help determine which services are best for you.