When making the decision of buying a car, a major consideration that needs to be made is whether to buy a new car or a used one. This becomes even more important when getting a car loan, since loan terms can differ significantly for used cars and new ones. As a buyer, it is important to understand what these differences are, so as to decide which car loan would be better suited to your preferences. The following points highlight the major differences between a used auto loan and a new one-

• Since used cars have a reduced cost, these loans tend to be smaller than those on new cars, which are obviously longer.
• The rate of interest on a used car is likely to be higher than that on its new counterpart, owing to the higher risk involved in such a car. In this way, new car loans have the advantage of having lower interest rates.
• Used car loans are generally considered to be riskier than new auto loans from the lender’s perspective. This is because these loans run the risk of the car’s value falling below the loan’s value before repayment. It is for this reason that buyer’s might be required to pay a higher down payment on a used car than on a new one.
• It is usually difficult to get a loan on a car that is more than ten years old, since such cars are very risk for the lender.
• In the long run, the cost incurred on a used car is likely to be substantially less than that on a new car. This is due to the high level of depreciation of a new car when compared to a used car in good condition.
• As far as the interest rate is concerned, while the condition of the car and whether it is new or used definitely has a bearing, a greater role is played by other more important factors, such as the borrower’s credit rating and the amount being borrowed. This explains why the rate of interest should not be a major factor when deciding whether to buy a new car or a used one.
• It is a good idea to calculate how much you shall be paying at the end of the loan period in both cases, and take into account the depreciation in the car by then, while making a choice between a new car loan and a used car loan.

To obtain quick, cheap and secured auto loans, consider Greater Central Texas Federal Credit Union only. You can visit at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

Buying a car is a major step for any buyer, and before taking the plunge into bringing a set of wheels home, it is important to have a clear understanding of how car loans work, and what is the best option for you. The length of a car loan is a critical decision, since it bears an effect on the next few years of your life, making it important to know what you are signing up for. Car loan terms can range from as less as 1 year to as long as 6 years.

There is no one perfect term that is ideal for all buyers, since the length of the car loan depends largely on one’s monthly income, and how much they can afford to pay towards the car loan each month. The car loan term is also influenced by the condition of the car, its price, the amount of down payment the buyer is willing to pay, and several other factors. So the question is, if you are buying a used car, what is the ideal term that you should settle on for your car loan?

Let us take a look at both sides of the coin-

• Short term auto loan- A short term loan, which is usually considered to be less than three years, can be a good way to save money in the long run, since this shall mean lower interest rates, as well as a lower total payment towards interest. Another advantage of getting a short term  used car loan is that you own the asset faster than you do with a long auto loan. However, the disadvantage of such a loan is the higher monthly payments, which put you at a risk of falling behind on payments.
• Long term auto loan- Loans that last up to around 72 months are considered to be long term auto loans, and are often the preferred option among buyers who wish to have lower monthly payments, even if this means making these payments for a longer period. Even though you will end up paying more towards interest with a long term loan, it will be easier on your pocket on a monthly/ weekly basis, which is a major advantage for those with low monthly incomes.

Whichever loan term you choose to go with for your auto loan, you can always pay it off before the period, albeit with an early termination fee. In addition to this, you can also refinance your car if you come across a more favorable loan.

We, at Greater Central Texas Federal Credit Union provide low interest loans for both new and old cars. For more information, you can visit us at 3305 E. Elms Rd., Killeen, TX  76542 or call (254) 690-2274.

Everyone dreams of owning a car and being able to experience the independence that comes with it. So if you have finally decided that it’s time to make this dream come true and are all set to make the great purchase, you should take the next step after picking the right car loan. Even though almost all car loans seem similar to the layman, but when you dig deeper, you realize that there is a huge difference between car loans, and in some cases, these can add up to thousands of dollars in the long run.

The guidelines below help you with some useful tips for getting a cheap car loan-

• Credit union auto loans- The financial institution that you choose for your car loan can make the biggest difference in the amount you end up paying in the long run. Credit unions have been proved to be a lot cheaper than banks, when it comes to auto loans. So the first step to getting a cheap car loan would be to join a credit union if you aren’t already the member of one. These not-for-profit organizations function by giving back money to their members on cheaper interest rates and lower monthly payments.
• Evaluate your credit report- By using a free online service available to all US consumers, you can evaluate your credit report beforehand to be sure of what to expect and to have a clearer and more realistic perspective of what your options are.
• Decide your budget- A mistake that most buyers make is leaving the most important decision of which car to buy and how much to spend on it for the last moment. This often leads to overspending.  Hence you end up with larger monthly payments than you can afford.
• Look at the complete picture- Make sure that when you are finally negotiating an auto loan, you look beyond what’s being shown to you. At times, what might look great on paper can actually be a bad deal in the long run. Make sure that you do not end up paying more than the car’s actual worth. It is also wise to look carefully at other terms of the law, such as prepayment penalties.

For more tips, visit us at Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542. You can also call us at 254-690-2274.

Buying a car is one of the costliest purchases most people make in their lifetime, which is why it is important to ensure that you thoroughly understand the process of car financing before taking the plunge. Unless you are one of those rare buyers who can afford to pay the entire price of the car upfront, you will probably have to consider all the financing options before you pick one. Credit unions have emerged as a popular option for auto loans, principally because of the significantly low interest rates that they offer. Here, we shall be discussing how car financing from a typical credit union works.

1. The first step, of course, is to become a member of a credit union, if you aren’t one already. This is important because most credit unions offer auto loans only to their members. In fact, this is how they are able to function as non-profit organizations, and give back to their members in the form of low interest rates. Be sure to take a look at the type of loans offered by the credit union you are considering before becoming a member.
2. Once you have secured a membership with a credit union in your area, it is a good idea to take a look at their specific requirements for auto loans, and make sure you have all the documentation required for the loan application process. The paperwork is more or less the same as it would be at a typical bank, the only difference being that you can expect much better assistance and customer care at a credit union. It is a good idea to obtain your credit score and fix and discrepancies that might be present in your record before submitting your application.
3. With the first two essential steps of your auto financing taken care of, you now need to make the critical decision of which car you wish to buy. It is advisable to decide on the budget beforehand, so as to narrow down your choices of cars you can actually afford. You also need to decide whether you will buy a new car or a used one.
4. Finally, you need to decide on the amount of down payment that you shall be making, and the loan period that you desire, both of which shall determine your monthly payments.

We at Greater Central Texas Federal Credit Union provide you quick and cheap car financing in Texas. For more details, you can visit us at 3305 E Elms Road, Killeen, TX 76542. You can also call us at 254-690-2274.

Are you wondering how to buy the car of your dream? Getting yourself a secured car loan is your best bet. It is a loan that you can avail by surrendering collateral which you can regain once you have paid back the loan with interest. Every year thousands of people apply for a secured car loan. It is uncomplicated and has many advantages for the borrower. In most of the cases, the car itself is the security. The lender considers the car as the security against the loan. He acquires the car in case the loan is not paid. But sometimes, the lender may ask security of a higher value. In such cases any financial asset such as house, another vehicle or jewelry can be used as collateral. There are three fundamental requirements to get a secured car loan. You should have regular monthly income and you should be able to prove it using bank slip or any other document. Lenders prefer to lend loan to people who are employed somewhere than to self-employed. Also, if you live in a rented apartment you should have proof that to have lived there for at least 12 months.

One of the biggest advantages of getting a secured loan is that the interest is low and the tenure to return the loan can be longer. Since lenders have the security of the collateral the terms are flexible. The borrower can enjoy easy payment of installments, which allows the borrower to plan his or her savings. The lenders are interested in getting their monthly installments on time. As long as you are able to prove that you have a regular income you can get a secured loan regardless of which income group you fall in. Borrowers of secured loan who are asked to surrender their house as collateral often can benefit from tax-deductions. In such a case, the monthly installment is deducted from the tax that one would otherwise pay. Another advantage about secured loan is that it allows a cordial relationship between the lender and the borrower because of the security of collateral. The lenders are not skeptical about getting their installments and they sometimes can even go easy on delay in payment of installment.
 
In these tough economic times choosing secured car loan is the most hassle-free option.

Everyone dreams of owning a car that they can proudly say has been bought from their hard-earned money. But you might feel the burden on your pocket since the car prices are high and the economy hasn’t yet stabilized. However, high prices should not dissuade you from buying a car for yourself. A good knowledge about car financing can go a long way in helping you decide which car can be bought within your budget.

Read on to know what are the dos and don’ts of car financing.
Basically, car financing means getting a loan from a bank, a credit union or any other source in order to buy a car. This way you can easily buy a car that you desire. The problem of limited budget can also be resolved with car financing.

1. Firstly, one must conduct a thorough research on the amount of money that needs to be borrowed. Prior research helps in determining whether a certain dealer is levying extra charges by means of additional costs and hidden interest rates. This groundwork needs to be done properly so that you get the best car financing deal.
2. Compare and contrast the financing terms of the various auto loan options available. This comparison can be done online by making use of an auto loan calculator. Have concrete information about the current interest rates and get a number of loan options in hand so that you can take a print out and go to a dealership authoritatively.
3. Never ever cross your budget limits. Always pre-decide on how much you can easily afford and then only go in for car financing. After all, it is you who has to return the money.
4. You must have a complete look at the manufacturer’s website in order to know what all factory incentives are available. If a financing deal does not suit your budget requirements, don’t hesitate to decline the offer.
5. Credit Unions offer one of the best car loan options. You need to become a member in order to be eligible for a credit union loan. The advantage here is that these unions are owned by their members and work on a no profit basis. They offer low interest rates and better financing terms. This in turn means your loan is going to be for a shorter period.
6. There is no need to go in for financing options for add-ons, extended warranties and rust protection etc. Most of the new cars are available inclusive of all these additions.
7. Don’t get attracted only to a specific model as the dealer might offer you a high price and high interest rate. Keep 2-3 options in mind before going in for car financing.

Keeping the above points in mind will definitely help you get the best car financing deal.

There are two steps to bring home the car of your dreams- first, finalizing the car that you want to buy and second, choosing the right loan lender. Even though deciding on the former could take a while (boiling down to one that is affordable and what you desire), choosing the latter is definitely tricky. There are various loan lending institutes and to decide upon one is quite a challenge.  Let us explore one of the most suited options.

Taking car loan from a credit union may prove to be most pocket friendly option for you. Credit unions are non-profitable finance organizations. They surely do make profits in order to run their management but their policies are not high on making money from the customers. They are, thus, able to provide loans at fairly low rates of interest, especially when compared to other traditional lending organizations. Most loan consultants will suggest you to make a large down payment. This helps in cutting down the rate of interest that you will be paying regularly. But for those who do not have access to hefty accumulated cash, the only option is to find a car loan lender who offers competitive rates.

Credit unions have hassle-free formalities and the loan gets cleared in as short a period as one day. They are community-friendly and provide great customer services. You get to talk to an agent who will explain all the car loan programs so you can make an informed decision. For example, if you are willing to pay high monthly installments against the loan taken, you may choose a short period loan. They have no hidden charges.

Credit unions often have close associations with local car dealers. Some of the best car deals provided by car dealers are exclusively offered to the credit union they are associated with. Try to find out about any such deals before making your purchase. Being non-profit entities, credit unions lack sufficient funds for marketing and advertising to create awareness about advantages of taking loans from credit unions. Therefore, you may need to research about the credit unions near you and the rates at which they are providing loans. You can find them through online advertisements or by enquiring from car dealers.

Legitimacy of a credit union can be checked on NCUA (National Credit Union Association) website. NCUA is a government body that guards all credit unions balancers. 

For more tips, kindly visit us at Greater Central Texas Federal Credit Union.  We are located at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

The thought of buying a new car can be very enticing, especially if it’s your first car. But before buying a car, you must bear certain important factors in mind. You cannot just go ahead and buy a car instantly. The car you ultimately go in for has to fit within your budget and suit your tastes. Read on to know certain dos and don’ts that you must be aware of before buying a car for yourself. At the end of the day, it is your hard-earned money that you are going to invest, so you have to make sure that it is spent in the best way.

• Firstly, you must research about the various options available in the market. You should have knowledge about the accessories as well, since they can add up to a significant cost in the end. This research will help you get the best possible price for your car.
• Do not go in for a luxury car if your budget does not allow you to do so. You should try not to get a loan spanning more than four years. Also, you must keep your monthly payment less than 10 percent of your income.
•  Remember to keep in mind the fuel costs and maintenance charges. Only if you can afford these, you should go in for a particular car that you desire.
• Get in touch with your insurance agent to get an idea on the interest rates beforehand.
• Do a thorough research on the auto loan options online and compare financing terms using an auto loan calculator. Take a print out and carry these documents whenever you make a visit to the car dealer.
• Also make sure to check your credit rating in advance. This will help you deal better later on. 
• Don’t fall flat for a vehicle while ignoring other options. Look for various models and then only choose the one that fits your bill.
• You should also know the incentives being offered by the car dealer. Therefore, researching on the Internet beforehand about these things can help you prepare in a better manner before you go out to buy a car.

These are some of the simple dos and don’ts which if kept in mind can definitely help you grab a better car deal that is light on your pocket and good for your taste! Make sure you take care of these things whenever you think of buying a new car and you will definitely be better prepared.

Choosing the perfect car for yourself can be one of the most exciting things to do. The car you ultimately buy has to be in sync with your taste and requirements. But before buying a car you need to take care of certain parameters so that things go exactly the way you want. Considering certain factors well in time can help you get your hands on the best car that suits your needs. The vehicle should provide you utmost benefits and prove that it’s worth the money spent. Read on to know some of the best car buying tips that will definitely help you in the overall purchase process.

• Firstly, you should try and opt for a new car if your budget allows you to do so. A brand new car is a better option for many reasons. Not only you will get the latest vehicle technology, you also don’t have to deal with issues or damages from previous owners. Moreover, the new warranties are far more comprehensive. You can also customize the car according to your own preference. Most importantly, the latest cars offer gas-efficient models, which is very beneficial in the longer run.
• The second most important thing is cash consideration. Even though you might be able to afford the new car that you are going to buy, you can’t arrange all the money in one go. This is where auto loans come in handy. These loans are also available on used cars.

1. You should consider your credit score and loan limit before going in for an auto loan.
2. Check the amount that you can afford for the down payment and only then finalize the auto loan.
3. The duration and interest rates on the loans are equally important variables that need to be considered.
4. If the overall cost of the vehicle seems to be too much for you, it’s better to look out for some budget-friendly cars.

•  You should do extensive research before buying a new car. There are a number of good forums on the Web that have people discussing about the latest designs and technologies integrated in the new cars. This will definitely help you choose a better car. Nowadays, dealership companies have a separate section on their websites where they provide an overview of all the new cars. You can read it thoroughly and take your decision accordingly. Searching online can prove to be fruitful as it saves a lot of time and can help you find your dream car at affordable rates.

Just keep a few tips in mind and the car of your dreams will turn into reality!

We at Greater Central Texas Federal Credit Union provide cheap and quick secured car loans, for used car as well as the new ones. For more details, kindly visit us at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

If you are looking for auto loans for a short-term period at competitive interest rates, then approaching a credit union could be your best bet. For those who are new to the concept of credit unions as financial institutions for borrowing money, it is important to know that these are formed by a group of people with some common link such as members of a church, business, etc. The members pool in their assets for the purpose of providing loans to any one of the members who need the money. Credit unions are becoming a favorite among those willing to buy cars on the basis of a loan as they are very convenient and pocket friendly.

Here are some of the top reasons due to which getting an auto loan from a credit union is a smarter choice today:

• Personalized attention: Credit unions being smaller organizations than other financial institutions offer faster services to their members and even accommodate minor changes in the scheme of repayment.  There is always some scope for a member to negotiate on the rate of interest and even to get some extra time for the repayment.
• Easy availability of car loans: Fluctuations in the economic status have made financial institutions quite aggressive when it comes to offering money for loans. However, credit unions are far more relaxed when it comes to giving auto loans to their members and are not affected by the economic conditions as they always have a good amount of funds and enjoy good relations with car dealers.
• Competitive rates of interest and relaxed terms and conditions: It is a well-known fact that the rates of interest offered by credit unions on auto loans are lesser than that of other financial institutions. These institutions are also flexible when it comes to their terms and conditions, as they are sensitive to any problems that their members could be facing in repaying the loan.
• Simple loan process: Getting an auto loan from a credit union is very simple and no longer requires a member to sit down with a loan officer to complete the formalities. You can apply for the loan at a participating dealership, over the phone and even online as per your convenience.
• Perks: Members of credit unions enjoy perks that other customers do not have access to such as low interest rates and special deals.

For cheap auto loans in Central Texas, visit us at Greater Central Texas Federal Credit Union. We are located at 3305 E Elms Road, Killeen, TX 76542. We can also be contacted at 254-690-2274.

• Lower rates of interest: Credit unions offer favorable interest rates as compared to banks that help in making savings in the long run. The unions are non-profit organizations and are exempt from paying taxes like traditional lenders. Therefore, credit unions offer lower interest rate on home loan mortgages.
• Flexibility: Unlike banks, the credit unions are more flexible in the policy and are cooperative with their members. As the credit union is members owned, all the members have the right to vote on important issues that affect the rates of interests. 
• Lower income requirements: The credit unions may also approve borrowers with lower income. Thus people who might not qualify for a loan in a bank stand a better chance of getting a loan through a union. 
• Other benefits: Some other benefits of taking home loans from credit union include personalized service in comparison to banks, higher payouts on certificates of deposits, faster closing options and even the possibility to miss a payment.
  

• Lower Fees And Better Rates: Credit unions operate with the sole objective of working for the welfare of their members. All profits that they earn are returned in the form of lower rates of interests, better services, and minimum fees.
• Volunteer Board of Directors: Unlike banks, the functioning of credit unions is administered by a volunteer board of directors. When a member opens an account, he/she is immediately given certain share in the credit union. Every member has an equal say in the governance matters, regardless of the size of their account.
• Board Elected By Members: Every year, the credit union conducts elections where the members are free to choose who would be serving on the board of directors. The elected members, then, formulate and implement the policies of the credit union.
• Flexible And Convenient Loans: Members of a credit union can avail convenient home and auto loans with easy repayment options. Also, filing for and getting approved for a loan is a very easy process. It does not involve much paperwork and the application is approved within a few days.
• Dividend On Savings: The profits earned by a credit union are usually returned by way of attractive dividends on the savings account of the members. The dividend rate may vary from year to year.
• Members Have Common Interests: Members of the credit union share a common bond of owning a share in the union. To be a credit union member, the individual must fulfill certain eligibility criteria, such as area of employment, place of residency or affiliations with other institutions. This implies that each of them holds something in common.
• Convenient Access To Your Money: Most credit unions offer online account access so that the members can easily view complete summary of their financial transactions. Thus, you either opt for 24X7 access or personalized services during the office hours. 

• Annual Percentage Rate (APR): It refers to the variable or fixed interest rate at which the financier is ready to lend the loan for a certain period of time. Borrowing a loan at a low APR does not always mean a cheap loan, particularly if it is a long term loan. Paying higher number of installments at a low APR ultimately leads to reimbursing more interest.
• Comparison Rate: This includes the upfront loan fees as well as the proposed interest rate. Comparison rate will help you in assessing the true cost of the home loan.
• Fixed Rate: This allows you to borrow the loan at a definite rate of interest with fixed monthly payments for a specified period of time.
• Loan To Value Ratio (LVR): It refers to the size of your home loan in proportion to the actual value of the property to be purchased. For instance, if you borrow $200,000 to finance a home worth $400,000, the loan will have an LVR of 50% ($200,000 is 80% of $400,000).
• Variable Rate: It keeps on varying according to the changes in official rates of interest.
• Down Payment: When you borrow a home loan, the lender will require you to contribute certain percentage of your own money to buy the house. This initial amount is known as down payment. 
• Refinance: This refers to procuring a new mortgage loan on an already owned home. This is usually done to switch current loans on the property. 
• Loan Term: It is the time period before the maturity of your home loan and is usually indicated in months, usually 24 to 84 months. It helps the borrower have an idea about when he is expected to pay off the loan.
  

Purchasing a home requires a big financial input and usually people apply for a home loan to assist with the investment. However there are many criteria and conditions that you must fulfill to qualify for a loan. Here are some parameters that describe your home loan endorsement and explain who can apply for a home loan in Killeen, TX.

• Salary: One of the most important criteria that you must fulfill in order to be eligible for a home loan is regular employment. The loan providers seek the assurance that you can repay the loan amount smoothly without any interruptions. They make sure that the borrower has enough resources and seek documents such as your salary certificates, etc. High salary increases your chances of being approved for the loan.
• Stable job: To qualify for a home loan, you must have a stable job. You must be employed for at least six months or a year before applying for loan to show sta