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Credit unions get up to speed for online car
shopping
By Pat
Curry • Bankrate.com
 Auto
financing is the bread-and-butter business for credit unions. For
decades, they've coupled super-low loan rates with consumer-friendly
service. But they were often too small, too remote, or closed when
shoppers wanted to make the deal.
Not any more.
Step into a credit union and dive into a mini-resource
center of auto buying and finance information. Car shoppers can
apply for auto loans online, over the phone, at the branch, even
at the dealer. Many credit unions offer 24-hour online services
to make loan approvals more convenient for their members.
And, you'll probably be pleased
with the offer. Bankrate.com's survey of auto
loan rates consistently shows that credit unions offer better
rates than banks or thrifts.
Pre-approved for a better
deal
Like consumer experts, credit unions also urge members to get
financing approved before car shopping. That way, members have one
less thing to worry about while haggling for prices at dealerships.
And because many credit union members can get loan approval online,
there is no excuse for not getting the financing pre-approved before
walking onto a lot.
Once they get pre-approval "members can essentially
shop as a cash customer and that's what we instruct them to do,"
says Larry Jones, vice president of marketing at ORNL Federal Credit
Union in Tennessee.
"Pre-approval is a way you're sure you're going
to get the loan," said Ellis Waller, product manager for automotive
lines with the Credit
Union National Association.
"You can go into the dealership with money in
hand at a rate you know is attractive. When you say you have the
financing, the dealer won't try to convince you their 2.9 percent
financing is better. It's almost always better to take the rebate
and finance with the credit union."
There is a clear advantage for the credit union,
too. Fewer members end up with dealer financing.
Used-car buyers get
extras, too
Whether you're buying from a dealership
or an individual, credit unions have a special deal with CarFax,
the leading auto title information collector.
With title information on nearly a billion cars
going back to 1981, CarFax has a wealth of information available
on vehicle history. The reports can tell you if a car has been wrecked,
flooded, totaled, recalled as a lemon or had the odometer rolled
back.
CarFax offers a discount to credit union members
at its credit
union member site.
It's about service
"Credit unions that are not online
are losing and will continue to lose new car loans as Internet auto
buying services appeal to their members who are online," says Waller.
He predicts that if your credit union isn't
online now to help with your car-buying needs, it will be soon.
Lucy Lazarony and Amy
C. Fleitas contributed to this story.
-- Updated: Aug. 26, 2002
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