Buying a vehicle is one of the first biggest financial steps that you can take in your lifetime second only to becoming a homeowner – and whether you're buying your first-ever vehicle or whether it's time to upgrade to another car, most people don't have the ability to just walk in and purchase a car in cash.

For anyone who wants to buy a car, the best option is usually getting a loan to fund their purchase. When looking at cars, the first thing you'll see is that the dealership gives you the offer of a loan to buy the car you like right now. This is enough for most people to sign right on the dotted line: It's instant finance for your car, after all.

But what if approaching a car dealership isn't the best way for you to get a vehicle loan?

Car Loans: Metro Credit Union vs Car Dealerships

There are other options out there, and especially for first-time vehicle buyers, there are a few reasons why choosing a credit union might be better.

Credit Unions Stay in Touch

Credit unions have become a lot more popular than banks because they're often a lot more personal (and a lot more in touch) than the majority of strict financial providers. Customers have a better chance of interacting with their credit union on a personal level – and this inevitably means that it's easier to secure favorable credit terms as opposed to getting loan terms that have been worked out by an artificially intelligent algorithm that frankly doesn't care.

Car dealerships might initially want to seem like they are your best friends in the world, but this demeanor often disappears when the contracts have been signed and they've sold you a vehicle.

Credit Unions Usually Offer Lower Loan Interest

One of the first reasons why people opt for credit unions is that they offer better terms than banks. There are a lot of complicated reasons as to why: Partially, it's because of the fact that credit unions can offer better interest on the money you gain – and often lower interest on the money that you have to borrow from the bank.

If you were to approach a car dealership for vehicle finance, they're likely to charge exceptionally high interest rates and very strict terms: You'll almost always end up paying way more for the car than if you had chosen the same loan through a credit union.

Credit Unions Offer Flexible Terms

When it comes to your loan terms and conditions, the car dealership's job is offering you what seems like an excellent deal for you - but is actually a better deal for them. In the end, the car dealership's sole goal is to make their money out of you, whether you're buying a car with credit or buying it in cash.

While a dealership's terms might feel like the perfect negotiation, it's almost guaranteed that you'll find better terms from a credit union.

Approaching a credit union rather than a bank or dealership can give you more control over the terms attached to your loan: Often a lower interest rate over a longer period of time, and less penalties for things like late payments.

Metro Credit Union | Best Car Rates in Omaha

Our goal is to help you get the best deal possible, whether you finance with us or not! We'll use our resources to determine if you're paying a fair price for a new or used vehicle, whether you're getting the maximum out of your trade, and determine if your loan rate is competitive.

All of this at no charge, with no sales pressure. It just makes sense to start your car buying experience with someone you trust, your credit union!

Plus, we offer great deals on extended warranties & GAP insurance. 
Learn about things to consider when buying a used or new car